Porch Group (PRCH) Moves to HOLD
Porch Group (PRCH) has been very weak recently and moves to hold today. This move hasn’t been unique to PRCH, in fact most SPAC IPOs have been soft for a while now. However, we saw a sizeable decline on Friday and follow-through softness today. We also had the short report from a few weeks ago that has likely made some investors a little nervous. PRCH is trading right on its 200-day line now, which happens to be almost smack on our entry price. To say that we would not like to see this stock go from having a nice gain to a loss is an understatement. We accept we’ll have the occasional “round trip” stock, and that’s one thing, but going from gain to loss is quite another. In short, PRCH moves to hold on technical weakness today and is on high alert for potentially being sold. If you wish to cut the position now and avoid the potential of an afternoon selloff should PRCH fall below the 200-day line, that is a perfectly fine decision as well. HOLD