Community Health Systems: If There Is A Buyer, Is It At A Lower Price?

Community Health Systems CYH shares are trading lower by $0.64 (5.5 percent) at $10.45 in Tuesday's session. The issue has been volatile over the last few session as there have been reports the company was exploring options, including a potential sale.

On Friday, it sprinted to $13.28 when rumors first surfaced, but was unable to hold those gains to end the session at $12.29. When nothing materialized over the weekend, the issue was unable to reach that closing price, peaking at $12.19 off the open and ended Monday's session at $11.09.

Once again, the issue received a boost in pre-market trading as Reuters reported Apollo Global was in talks to acquire the company. Since Apollo Global has been on a buying spree as of late, it wasn't inconceivable that they may target Community Health Systems.

The gains from the rumor quickly dissipated and the issue could not even muster a higher open. After rallying a dime beyond Monday's close ($11.09) to $11.19 and no confirmation of an impending deal, the issue sharply reversed course.

At this time, it has breached the series of lows at the $10.40 area, reaching $10.30, and is attempting to mount a rebound. If no buyer comes forth and the issue continues to decline, the next area of support comes in at the $10 area, where the issue made a trio of lows in late August.