Marty:
Well, I've hashed this Cherokee thing over and over again for the past few days. Walking the dog, washing the car, waiting at the airport, in line at the Price Club... I've never had a stock so puzzling in its absolute opacity.
I saw a similar one-time cash dividend to shareholders a few years ago here in San Diego. The company was Nitches (NICH), another small garment concern. Right after the distribution, the stock dropped so quickly I was convinced the management announced it just to boost their own portfolios and bail out before the cash was paid. It took over a year to recover. I don't hold stocks that long without a good reason.
I finally decided to forget the fundamentals of the company and watch the technicals only, at least for the next few weeks. That approach has served me well in the past, and it reduces everything to black and white, taking all the emotionalism out of the equation. I'll hang on to CHKE until I see weakness. It's now just above its 50-day MA, my acid test for buying, selling, shorting, and covering.
But I will not, however bad the temptation may be, buy more CHKE in an effort to capture the dividend.
Best of luck to you, Marty, and may 1998 be everything you want it to be.
RS |
