Even though I knew this was coming , I am pissed. The stock is a pile of shit. No word from the company as usual. The analysts and momentum players like me will be left holding the bag. With component stocks, it’s a game of musical chairs – like the rest of Wall Street..just sped up.
I know better, but started buying some back today at the close. I am back at a full position, after selling on the way up , and added some calls.
I don’t think anyone should be trading it as it acts like it is ready to implode and has done this before, but it’s my poison. People on the street are looking at last quarter’s numbers and extraploating it out and saying the stock is cheap . They are wrong.
Component stocks and cyclicals always look cheap at the top. It’s why people get buried in them and why I suspect that this trend may be over soon if not already.
That said, I can’t help but buy a stock in a strong uptrend even after falling a straight 30 percent. This winner for me could become a loser on a preannouncement, but I am a big boy and am taking a calculated risk. My calculated bet here is that the trend reasserts itself (it better really fast) and that management is not about to drop a bomb.
Pray for me :) .