Earlier this week the first bottom-caller for IndyMac Bank (IMB) surfaced. A Roth Capital analyst upgraded IndyMac from "sell" to "hold" citing a "more attractive" valuation after the sell-off and stating that concerns that the company may not be able to continue are "overblown."
Shares briefly rallied as much as 10%, but since then most of these gains have evaporated.
IndyMac has had a rough time lately, with its share price down more than 50% year to date. Concerns over subprime loans spread to "Alt-A" loans, and the demise of AHM added more fuel to the fire.
While IndyMac probably won't face the liquidity crisis that put AHM under, I think it is to still early to be calling bottom. Even if things are not as bad as they seem, the market will keep coming up with increasingly dismal worst case scenarios. At this point, it is not prudent to jump into the stock until the cycle has run its course.
Uglychart.com anoints their daily all-time low and all-time high lists with a quote which seems appropriate here: “It is one of the great paradoxes of the stock market that what seems too high usually goes higher and what seems too low usually goes lower.” - William O’Neil
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