I don't know how long you have been investing and I don't mean this as a slight or a slam, but market experience shows that many times, issues like the strike (or a lawsuit) get priced into a stock BEFORE the fundamental impact hits. Moreover, stocks often move up on the resolution of that fundamental impact, since that signals the end of that issue.
I'm sure you have heard the maxim that the stock market discounts 6 months ahead. Similarly, stocks price in news before it happens. The stock price is not only a function of the fundamentals of that company but also the PERCEPTION of those fundamentals. Take a moment to think again about the perception of the strike in investor's minds today. We know it hurt and we know it's over. So, any impact from that event is already in the stock price. In fact, management has already laid out what the impact of the strike would be each week and the stock has already taken those lowered earnings for the third quarter into account. You're concerned about something that is water under the bridge. By the time they report Q3, this stock will be well off these lows.
I got very lucky yesterday and came back from lunch to see the stock having tanked. So, I put in a market order and got filled at 12 9/16. I rarely use limit orders. I am usually buying a stock as a multiyear holding and if I think it's attractive at this level, it really doesn't matter whether I get it at 12 1/2 or 12 3/4. Otherwise, what ends up happening is what happened to you, where you miss it altogether and then have to buy above 13 if you still want it. |
