Paul,
Wow, it's a bloodbath out there. Worst that I can remember. (But my memory isn't that good -g-.) Not too many posts here either.
Yep, Enthusiasm wanes when you're down 30+% in only a few months. I've been tempted to try a short like you mention, but I've never done one and besides shorting the stocks I've been buying I haven't the slightest clue what kind of companies would be best to short.
I lightened up on my position in DSWLF today. Japan is looking like it's going to blow up in our faces. Saw a NY Times article that Japan banks are in worse shape than we thought. It is amazing to me that they can have all that capital, a highly educated and loyal workforce, and can still not make the economy work.
Fundamentally, I've become a short term bear on this market and am looking to raise a little more cash should we get another rally, but I'm looking to jump back in with both feet into small caps when it seems market sentiment turns. Psychologically the current trend is extremely draining and I just don't feel like fighting it anymore. I'm at the point where I expect my holding to decrease in value each day, and am surprised when the market makes a move up. I guess that makes me a bear, huh?
Does anyone have comments on Danka Business Systems, DANKY?
marketguide.com
wsrn.com
Reason for recent drop: They continue to have problems with the Kodak acquisition, and per a recent press release are likely going to violate some of their loan agreements and post loss this quarter. Revenues are down. On plus side: recently brought in well regarded new manager to turn things around. Sales force seems to have been really torn up by the merger w/ Kodak. Lots of turnover in sales force. Per some reading at Yahoo where some employees post, it seems the attitude at the company has changed to be more positive .
Sales of around $3.3 bil, and market cap of $195 mil. If they can turn it around this stock should be able to earn over $1/share if it returns to a 2% margin, which is doable by historical standards. Currently selling at around 0.40 of book, and around 0.06 of sales.
I'm not buying yet given my newfound bearish outlook, but this is way up there on my list of interesting possibilities. Then again with my recent history maybe I should short this one <g>
Shane
|
