This is a tough one. I guess there was no conference call or guidance on the announcement? It would be crucial to know what management expects for the next 3-6 months.
Clearly, the last quarter's earnings were abnormally low. I'm not sure that expectations were really .24, since the stock had dropped so severely in the past 2 months. Analysts don't always update their numbers efficiently.
The stock is clearly lower today, and will likely continute the trend. I am pretty stalled on what to do. Options:
1) Sell, get out now, call it a severe loss, move the money somewhere else.
2) Wait for printed quarterly report, study fallout.
3) Just hold. 3Q could be a pretty severe aberration given the move downward in oil prices, etc. It is entirely possible that as oil prices recover, MAVK's earnings will similarly rebound. And it seems that MAVK's beta compared to oil's price is pretty high.
A long-term investor, one who doesn't follow quarter-to-quarter earnings, might say that year-to-year MAVK doesn't look that bad. Of course, if this quarter's earnings persist, then we're talking $0.36 share which will be hard pressed to support a price of 10, let alone strong share movement.
It's discouraging to see other oil services stocks (MDCO) rallying today on a rise in oil prices, while MAVK falters.
Your thoughts? |
