It’s rare for trader Karen Finerman to call a bottom in a stock, so when she does, our ears perk up.
To make her call that much more intriguing, as a somewhat conservative investor, the stock that she picked – Digital Generation - doesn’t seem like it’s up her alley.
Shares have declined more than 70% in the period of a year. Typically this isn’t the place where Finerman plays.
But not this time.
After such a prolonged decline the stock turned higher on Tuesday. “It’s gone down, down, down until now. This I believe is the bottom,” she says.
Finerman points to a Reuters story as a catalyst; according to the report, the firm has hired Goldman Sachs and is weighing a potential sale.
The report also says Digital Generation has drawn interest from several private equity firms and rival companies.
“I actually think it will get done,” she says.