Hi Tom,
I can only guess as to why the downgrade was made.
A/ H&Q does not want to look like a schmuck recommending strongly a plummeting stock (can't keep their hooligan MM's in order either).
B/ If the VRTY numbers are good/sensational, then reiterating the strong buy will have no effect. Thus, downgrading the stock to a buy, then on Friday or Monday upgrading it again (if numbers are worthy) will rid that nasty and noeffective "reiterate" from the Strong Buy. This might help put an end to the massive selling which is going on.
The BOP and Money Stream are getting worse. This level of selling happening currently was not even seen when VRTY took a chute last September. Book value of $4.92. How much closer can it get? What do you think Kumar? I would like to hear your take on VRTY.
My guess? If it settles tomorrow in the 7's (if there is enough Testosterone and Estrogen to handle it), there could be a 50% upward correction next week, say to $11.00. If more good news arises, it'll have the $14, then $15 1/2, then $17 1/2 levels of resistance to deal with. I am a VERY amateur TA-ist, so please forgive my clutsy interpretations. Please correct this if it is wrong. TY.
Best of Health and Weath for 1997,
Fuzzy Gillette |
