when it had a great news release showing positives on sales, income, and future outlook?
Seems like a strong sell off for positive feedback
2007-03-13 09:50:09 · 4 answers · asked by smartestmanalive 2 in Business & Finance ➔ Investing
i know that the market as a whole had a down day but it was in the 1-5% area, not 25% like this stock.
Just seems odd
2007-03-13 10:04:08 · update #1
Besides the market sell-off due to the sub-prime lending worries, while there revenue and earnings for 4Q06 were good...
Revenue: $41.3 Million in 4Q06
Earnings: $0.17 per Diluted Share in 4Q06
Their guidance for 1Q07 and all of 2007 is quite a bit less than what analysts had predicted...
For the first quarter of fiscal 2007, the company anticipates revenue to be in the range of $24 to $25 million and anticipates diluted earnings per share of approximately $0.10.
--For 2007, the company expects revenue of $143 million to $147 million.
--For 2007, two analysts on average expect the company to post revenue of $161.4 million, according to Reuters Estimates.
It was also at a peak and I had been considering shorting it short term based on the technicals. So I see three reasons:
1. Technicals were going negative
2. Market sell-off
3. Guidance for 2007 not up to expectations.
Having said that, a $2.98 drop seems a bit extreme, but that's the kind of market reactions I've come to expect since the dot-com bust.
2007-03-13 11:46:04 · answer #1 · answered by huskie 4 · 0⤊ 0⤋
It's pretty simple. First, all that good news was already priced into the stock. Second, the market was expecting better news than we received.
The market's funny that way. That's why they call it a "random walk."
The general downtrend of the market exacerbated but did not cause the swing.
2007-03-13 18:57:25 · answer #2 · answered by Yardbird 5 · 0⤊ 0⤋
The entire market is down today due to fears about the sub-prime lending market. It most likely reflects people looking for safer harbors to move thier money into and not necesarily any weakness in the company itself.
2007-03-13 17:01:10 · answer #3 · answered by Louis G 6 · 0⤊ 0⤋
13 million shares were traded today when the average day is one million shares. My guess is that people put stops on their trade and the heavy downside triggered the stops which triggered more stops. Too much selling and not enough buying caused it to go down.
Here is the chart with volume included:
http://charts3.barchart.com/chart.asp?vol=Y&jav=adv&grid=Y&org=stk&sym=AOB&data=E&code=BSTK&evnt=adv
2007-03-13 17:38:42 · answer #4 · answered by gregory_dittman 7 · 0⤊ 0⤋