OUCH!
(My dumb luck saved me and I don't have any position)
Anyway, it seems to me that technically, if the stock drop (gap down) thru 34, it'll most likely drift to 25 range (25 was a good resistance but yet to be tested as support) or even 20, then probably come back from there. However, if it gaps down (tomorrow) to 20 or 19 as afterhours indicated, and close near low, personally I won't dare to touch it until about 13, where meaningful supports exist.
What puzzles me, is somehow I sense that the management did something wrong. I have to admit that I don't follow the company that closely esp as of late, but in my view they know the WS inside out and have strong ties with financial institutions. Being a great management team, it makes this warning looking REALLY bad. On top of that, they seem to indicate that the company experienced "a number of" deals not being closed. I would forgive one account, or even two, but a number of??!! To me, that signals something strange. Y2K related delay of purchase? New product cycle? Competition? ...
I'd love to hear more detailed stories behind this.
Good luck!
W. |
