Well Bernard, if it was cheap on Friday morning, it was cheaper today, so you had another bite at the apple. On the NYSE, the specialist can ask for a trading halt if there is a major buy/sell imbalance, which was certainly the case today. If market sell orders are placed right after bad news comes out, the specialist is going to match with whatever buys are then around.
Today again big volume, hefty percentage downward.
DAB is being punished for disappointing two quarters in a row. For all the same reasons you originally bought in Bernard, DAB is an excellent example of a divergence between L/T company fundamentals and current price. I used to buy these deals like almost immediately after the big hit, and found out time after time it was dead money until the company "reproved" itself to the Street, earliest being the next quarter, but more typically two quarters down the road. Sometimes the company never did reprove itself, and more often than not it took more than just one quarter of good behavior to get out of the stock market detention room. DAB may take longer than one quarter to rehab due to recent exceedingly poor runs of RAIN & Planet Hollywood (maybe a little Boston Market for gen'l restaurant sector.) If you have patience, buy now. If you have a good memory/tickler, come back in 70-80 days at the earliest. Most likely, it will still be stuck somewhere in the 5's. My guess is that this is a six-month price turnaround horizon - one quarter for management to implement the actions needed to get its costs in line with revenues, and the next quarter to actually show the results to the Street. OTOH, January is generally a pretty good month for small caps, particularly those with December tax-loss selling, so there could be a 30 day in-and-out trade window, but I'm way too slow to ever figure how to time those deals. IMO, DAB isn't going to have any kind of fast bounce-back, which was proven by today's trading. |
