WILC,
Well this is another case of I should have not bought much stock without understanding why the stock is cheap. That usually means someone understands something much better than I do, like margins are going way down. Note to self: If it looks too good to be true, put your hands in your pocket.
That being said, there is a nice cash cushion here (they declared cash of 3.70 on the call), company is still slightly profitable and expects to be in Q4, management is buying back stock, and if they can revert to normal levels of profitability in a year or two, buys in here should be well rewarded.
I will be looking to accumulate more, but with a much lower price target. If I had not position already I might step in here, but for now I'll be looking for a further drop, such as from tax loss selling.
MC |
