MAT and falling knives, and non-bouncies: -
RAD, AVP, G, NOVL, and now MAT are all examples of stocks that have had teh sh*t kicked out of them. a year ago, a sharp plunge would at least give a dead cat bounce. now they just keep falling. whether it be institutional selling, short selling, or combo of both, the best thing to do when confronted with such a stock is to wait for it to stop falling before venturing into a position. Then, if the fundamentals appear to warrant an entry do so. don't rush in. they seems to be plenty of chance to get it lower. if you are short selling, then seems to be lick chops time.
MAT was mercilessly killed today, then taken out back and beaten up some more, and then again. The stock has lost credibility - big time. Don't know if FA or TA has much relevance on this stock. I do strongly feel that if one bought at this level, one would smile big time 6 months to a year from now. but probably would have gone thru several bottles of tums in the interim. But MAT is not PETM or IOM or Indonesian phone company. It is the largest toy company that diversified into educational and software as a way to lessen their dependence on barbie and GI Joe and hot wheels.
Many years ago, mid 80's, MAT bought Atari as a way of getting into the video games world. it was a total disaster. Atari was on the way out and they bought at the peak. hmmm . maybe deja vu all over again. maybe cyber-barbie would be a better path. anyway. i picked up some mat today, some for trading and some for hold. i could have waited on both. larry |
