Stratasys Ltd - The Day After

Stratasys Ltd. SSYS shares are trading higher by $1.20 at $58.56 in Wednesday's session. After a disastrous day on Tuesday (declining from $80.08 to $57.36), resulting from the company issuance of weak guidance for 2015, it is attempting to rebound. The reason for the rebound may be the sellers are exhausted. On Tuesday, the issue declined all the way to $51.55 before making a dramatic reversal. As a result of the sharp reversal, the shorts that did not cover on weakness are needing to chase it as it rallies. Also, potential new longs that sat out Tuesday's session bloodbath are having to buy into a rally. Perhaps investors are following the lead of Gabelli & Co., who made a bold call today by actually upgrading the issue from Hold to Buy. This stands is in stark contrast to five other Wall Street firms that downgraded the issue and slashed price targets based yesterday's announcement.