Yikes, Mike!!
Thanks for the cheery news...and I won't take it personally, as I'm sure you did not intend to insult my excellent judgement. <ggg>
<<<How can anyone rationalize a loss by saying "my day trade is now a longer term hold"?>>>
I said this because I have no intention of taking a several thousand dollar loss on a stock due to a preannouncement of earnings. I do not think it is entirely unrealistic to assume that if sales pick up somewhat as we move toward Christmas, that earnings may not be as low as estimated. I'm not saying they'll suddenly turn around in a few weeks; however, the CEO stated that the revenues will be somewhere between 10-20%, which is a rather broad spread in my book.
If the actual numbers approach the 20% figure, and given the fact that we are all expecting the worst as evidenced by the downslide today, we may see a much more favorable reaction to the actual numbers in January. Namely, the stock may not decline further at the actual announcement as even the 10% figure is now no surprise.
Further, I have learned that although I panic, it is never good to sell into the massive hysteria generated by such a negative announcement. The only ones who profit in this scenario are the traders, and the brokers who generate many commissions on the sales.
Going a step further, Mike, I have seen dismal earnings predictions on other stocks, big dumps, yet they have drifted back up a point or more following the news. Surely you may be right in saying that GTIS could tank further tomorrow, but it was quite stable today, albeit low. Also, are there not about 60M+ shares outstanding? (Or is that 600,000? <ggg>)With a float like this, can 8M shares really speak for the majority of investors? There are many with higher bases who will not sell, and this may be the impetus to maintain a reasonably stable price for now.
If the market sells off radically as we close out this year, the stock may slide with the market. Few stocks can swim strongly against the market current, in hurricane force winds, as we saw this summer. If the market dives, GTIS will undoubtedly follow. I do not personally believe, though, that the market will make an enormous correction in the next month or so.
I rest my case. <gggg> Now, I feel better. See, I am good at convincing myself that I did the right thing in buying today at 8 1/8!! Humor me. Make me think that I'm a guru, ok? :) What can I say? I play the biotechs, so I may be full of it...if so, I will run back to my area of quasiexpertise with my tail between my legs, wailing, "Duke Nukem sucks!" <gg>
Good luck to us all!
Vicki |
