I don't know if this is normal profit taking, but New D's stock sure has had a history of binge and purge over the years, at least in their history of run ups and sell offs. Remember the stock sold off a lot going into the report of the Q1 earnings, only to have the stock blast north once the earnings came out better than expected. I think there is still a lot of nervousness and heartburn going on over the cancelled investor meeting with Nicole Schmidt, and the unscheduled Board meeting. The Company needs to understand that it is this kind of cloak and dagger behavior that is going to hurt the stock price. I would much rather see a guarded press release than nothing. At least something that would provide some explanation for what was or is going on. For now, they probably have spooked a lot of people. Over the next few quarters, assuming that earnings continue to improve, the stock should do very well. But I do hope they get around to telling us what all the recent mystery was about. I am still a long term bull, very much so in fact. I imagine that we saw some normal profit taking, but the down move was magnified by the strange goings on right after the initial drop. For now, and maybe until earnings come out, people may stay in a cautious mode. Since earnings are coming out on Thursday (7/30) prior to the market open, and the conference call will be at noon that day, then maybe we will finally get all of the answers for which we are searching later this week.
Mike |
