RIDE - Bottom feeding alert!...................
Can't resist throwing my "under $5" pick into the kettle!
Living in Seattle, I follow local stocks rather closely. As many may recall, RIDE was a highflyer in 1995, going from the $1's to a high of $35 before tanking last year. The CEO quit, the founders quit, an over abundance of snowboards, a $9 million+ restructuring - all helped to scare investors off of RIDE. And an audit is due in early March.
Last week, RIDE was trading at 6.125 - 6.75. Today it had an intra-day low of $4.5; it ended up closing at 4 7/8 (down 3/8) - a new low.
RIDE pluses: the #2 snowboard company in the world; great brand name; snowboarding will become an Olympic sport this coming Winter Games (exposure for the industry).
RIDE minuses: Questionable management (IMO); vicious competition; cyclical retail stock (generally speaking, down in spring/summer, up in fall/winter).
RIDE unknowns: The March audit results (and, from the sudden drop in price this past week, my uneducated guess is that results may not be sterling).
The point of all this? Ride has experienced near a 30% drop in the past week, to a new low. My gut feeling is that this is a result of the audit results (again, to be released in early March). I do feel, however, that bottom feeders should watch this stock. If the audit isn't too painful, RIDE has the potential to move up dramatically.
And, yes, I own the stock and will be averaging down tommorow! :(
JS
ps - sorry to post this to you Andrew, but I can't figure out how to just post a message to the thread without it also going to a person. Educate me! |
