CTB. I've followed this one before. If I owned it now I'd keep it. (That'd be me; others might cut their losses and move on.) Company generally goes against better financed competitors. It's been profitable though for most of the past ten years. P/sales is low. I say the company and stock will recover - but the stock might recover from even lower levels -g-. Company seems to have problems passing along high raw material costs. Eventually they will I presume, and the earnings and/or stock will recover. Looks like lows in the stock over past eight years were in 2000 and 2001 around high 9$ or low $10. I might add or buy around those prices again if they are hit, and look for a cyclical recovery to maybe $18-20 range.
Further, for me, it's mostly not been a good idea to carry the reasoning logic a little further, which is: sell stock now, take losses, buy back stock if/when it hits $10. That just doesn't seem to work (for me). I either miss it, disparage buying, or otherwise don't get back in. So for me, I'd hold and just add a bit more at lower price.
Of course all jmo, and I've been wrong many, many times. |
