Using the last major impulsive wave up:
$23.02 on 12/24 to $50.35 on 11/07, Brooks today has reached a low so far of $40.35.
screencast.com
The 38% fib is at $39.91.
The 50% retrace is at $36.69
The 68.1% retrace is at $33.48
EW followers say that a retrace will touch the 50% and the 61.8% retrace 73 percent of the time - not a rule, but a trade statistic.
Brook's requested a 15 day extension on filing the 10-K. on their fiscal year end, which was on september 30th. Dusty, the manager in charge of Life Sciences (was let go on September 6th), incorrectly included a shipment from a contract supplier as revenue. If the customer is a new customer, the revenue can not be taken in the quarter unless the buyer has signed off on the equipments meeting of certain specs.
The money is described as immaterial, but the actions is considered material.
The CEO Schwartz has taken over responsibility for the "Life Sciences" division. You can Bet that "deferred revenue" will be totally understood by the time the 10-k is filed.
This is a huge over reaction if the money is immaterial and a great entry point, depending on the validity of it being immaterial.
I guess, take your chances on the 61.8 % fib getting (if) touched, or wait for the 10-k and then hit the buy button quickly after immaterial has been confirmed.
The CFO at Brooks "Lindon Robertson" is so conservative, my bet is he spun out, when he discovered the poor revenue reporting!!
Bob |
