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The Continued Risk Of Holding Cross Country Healthcare

The Story So Far

CCRN Price data by YCharts

To recap the story so far, Adak Capital released a short thesis and sell recommendation ("A Creditor-Imposed Liquidity Risk For Cross Country Healthcare Is Looming") for Cross Country Healthcare (CCRN) on January 29th.

As shown in the above chart, CCRN dropped sharply at market open on January 29th, with more than 400,000 shares trading hands in the first two hours of trading. However, mid-day, the SunTrust Robinson Humphrey investment bank upgraded its rating of CCRN from "Neutral" to "Buy." The resulting increase in both sellers and buyers led to a massive increase in volume for the day (nearly 1.5 million shares compared to an average daily volume of less than 300,000).

Since then, CCRN's stock price has inexplicably risen by more than 11%. Meanwhile, AMN Healthcare Services (AHS), representing CCRN's closest comparable stock and a company that is actuallyRead More …