Trying To Pick A Bottom In SeaWorld Days After It Makes All-Time Low

SeaWorld Entertainment Inc SEAS is trading higher by $0.90 (7.7 percent) at $13.18 in Thursday's session. Two days after the company suspended its dividend, the issue is mounting a comeback.

The primary reason for today's snapback rally is the upgrade it received from Citigroup. It should be noted Macquarie called the dividend suspension a positive as well.

Related Link: Citigroup Upgrades SeaWorld To Buy Citing Favorable Valuation Following Share Price Collapse

The low that was made on Tuesday at $11.77 marked a new all-time low for the issue. The issue, which made its debut in April 2013, peaked the following month at $39.65 and never revisited that level. Considering the performance of the broad market, this is a horrible relative performance.

Although the buyers from Tuesday and Wednesday are being rewarded, they're fighting a strong long-term downtrend in the issue. Keep in mind, the next potential catalyst may not come until its Q3 earnings report in November.

On the negative side, they certainly will not be reinstating their dividend any time soon.

For those investors who are going along with the Citigroup's bullish call on the issue, one should keep in mind the overall trend in the issue, which is decidedly down. Also, longs should be attention to its all-time low ($11.77) as a breach may signal a continuation of the long-term downtrend.