Greg,
I can't provide any really great answers. There's always the typical explanation, "Buy on the rumor, sell on the news." The record Q3 has been anticipated for a while...now it has come and gone.
Also, TNFI will be losing earnings visibility for the next few months. Whenever this happens a company's stock tends to go down.
You could also say it is just due for a cycling. TNFI had a huge run-up going through the summer...at a price of $26, it was trading at a P/E of almost 30 for this year. Wall Street has been harsh with the apparel industry lately...very few companies command a consistent, stellar P/E.
My best answer, however, is that it is doing it this time because it has done it before. Go to a graph site and check out the yearly map for TNFI. I only checked one year back, but last October, TNFI peaked at nearly $30, higher than it did this year, as a matter of fact. Then it rolled downhill for nearly nine months to a low of $14 in May and then it jumped right back up again this year, peaking almost exactly a year later.
I hope these are good enough answers...I'm sorry that's the best I can do.
Bollmonster
P.S.--What the historical graph says to me is that this is a good stock to roll, although it has a long period. But hey, I can be happy with a 50 - 75% gain in a year. It's too bad that there aren't TNFI options. |
