Investor2,
PR out today after the bell. Possible 200 MILLION in restructuring charges!! ACK!
biz.yahoo.com
Plus, coming in below street expectations on Feb. 5. ACK! ACK!!
biz.yahoo.com
Do you have puts in place to protect your long shares? <ggg>
Short term it appears that there is support at 25-25 3/4, and it was already moving back to that level prior to today's announcement. The volume is all right, quite average lately, but not enough to keep it above 26 for long unless there were positive PRs or upgrades, i.e. some sort of good news to propel it up there again. Given the PRs above, don't count on any run to 26 too soon, I'd say. <gg> In fact, I'd suspect that if the sellers hit it tomorrow, the 25 level could be taken out quickly on a high volume downslide, and the next stop would be around 23 3/4-24 1/4. Should it tank below 23, I'd be quite concerned, particularly if there is heavy selling pressure.
It is possible that longer term investors will buy this one up at the 23-24 levels, should they feel that the restructuring charges are warranted and will position the company better in the quarters to come. I might be tempted to do so myself, after it finishes shaking out over the next few weeks. I think the most important thing will be to watch the volumes tomorrow, and if they are high, there will be a bounce off either the 25ish or 23 1/2+ levels at some point as is typical with such announcments; however, historically, once those quick profits are turned and the shorts are covered, a high volume dump will tank the stock further over the next several sessions.
Had the PR today not been announced, I'd have been concerned should it break below 24-24 1/2, unless it's strictly a bad day on the market, or on very low volume, which would present a buying opportunity. 24ish would've been a good place to add to your position, but again, given the restructuring charge possibility, I would be inclined to short against the box, or cut losses and bail unless you are very long term oriented and can weather any bumps (I am short term, however, so this strategy may not be appropriate for you). The PR aside, when buying at 24ish, the short term move to 25 1/2-3/4 is a nice, quick trading point, and you could watch volumes at mid 25s to see if it will sell down or push above that level of resistance. Whether that will occur here in light of the news now remains to be seen.
All the above, only my opinion since you asked, please do your own DD. (Besides, I will probably be proven wrong tomorrow anyway. And, for your sake, that would be just fine with me. :)
Best Regards & Good Luck,
V. |
