Just passing by and thought I might comment.
I've owned this stock in the past and dumped it quickly when it didn't perform as I expected.
Some lessons I've learned which might be helpful here.
1. Ignore the analysts. Most of them are trend followers and nothing else. Many times, they cause much harm to uninformed investors, who think they're the experts.
2. Financial irregularities usually breed additional ones. It usually takes 6 months to a year to work themselves out. Expect some scapegoats to be offered up from SFSK to Wall Street to make things all better.
3. SFSK had 38% institutional ownership. Not really high, but enough to accentuate the selling. If there's one thing Wall St. money managers don't want, is to be seen holding a troubled stock. When they dump, stand clear, because they could care less about fundamentals. I expect that after March 31, SFSK will stabilize.
4. Look at the financials. Are they really that bad? Missing analysts' expectations doesn't mean a company is out of business. Often it means that expectations were too high. A quick look at the SFSK financials tells me there's some value here and the selling is overdone.
Summary: There may be some additional downside, but it won't be much. If nothing else, SFSK should offer a good bounce sometime in the next month. If an investor feels he has to get out of this stock, then put in GTC stop limit order above 9 1/2 and I bet it gets executed in the next 30 days. |
