I'd say 12$ is a near certainty. We've already been there, and those lows need, at a bare minimum, to be retested. At the moment, I'm planning on scaling in, in increments, between 10 and 5. Might even buy LEAPs, but I'll wait till the 2004s are available.
I guess we're going to find out how many investors were already expecting a NTAP warning. That is, it will help answer the question, "how much of the bad news is already in the stock?" A little dip here, without emmediately setting new lows, and it's a good sign that the bottoming formation has begun. A gap down on big volume to new lows, and the powerful downward trend is continuing, still.
The other thing is, they only warned for one quarter. That means it is likely they need to warn again, for the next few quarters. EPS of 0.10-0.12 in 1Q and 2Q of the next fiscal year, are probably going to be more like 0.02 in 1Q, and maybe 0.05 in 2Q. |
