I never buy options. Sometimes you cannot forecast how quickly a stock will bounce back. If you are looking to break even on your holdings you can try another strategy I have used in the past when things went very wrong on a stock. If I thought a stock I owned had bottomed I bought as much stock as I could afford. When it appreciated a buck or two, I sold all this stock and enough of my old purchase to break even. Then I waited for the stock to fall again and repeated the strategy this time purchasing more shares than before. On their conference call someone specifically said they did not care about short term earnings; they were investing in equipment and employees to double the business from $100M (down from $130M) to $200M. I sold my position in CMT earlier this year. It was a holding I first started buying 10 years ago. I passed at one point cashing out at $11 only to watch it fall to $1+ in the 2009 crisis. I just had to stay put. I did move shares into a Roth at those low prices which worked out really well, but was painful when I did it. I think if we are lucky this stock could go into the low $20s, but I am not expecting that to happen anytime soon. Whatever strategy you pursue, Good Luck.
I chanced upon this stock through a stock screener with parameters like book value, dividend, etc. I started watching this stock in the 22-23 range. I started buying in the low 20's and then into the 19's and the 18's. Most recently I bought more in the 16's. This is a well run company where the board is doing prudent long term things. They have amassed quite a nest egg. They could raise the dividend or they could buy back stock, but they are not doing the eye candy to prop up the stock. They are thinking they could make an acquisition and that would be in the best long term interest of their employees and shareholders. An acquisition could conceivably add to EPS and to the share price. At these prices, I think the downside is limited. The earnings haven't really fallen substantially yet, but if they did they would be a negative to the share price. The share price could flat line for some time. I hold these shares in IRA's with a DRIP and I am comfortable with the downside, if it occurs. Too many companies have weak balance sheets and are using buybacks to boost EPS in this era of no top line growth. Another holding of mine is RCKY. They pay a great dividend, but their earnings report this week was poor and they gave weak guidance. For me, I realize it will be some time for these stocks to gather momentum. The dividend helps in the meantime. Make sure you listen to the CC's when they are available.
I made the huge mistake of buying GHM in the high 30's I am reluctant to dollar cost down here. Because I am not sure of short term to mid term oil prices. I am thinking there could be much more down side to this stock.
This company has forecast that earnings and sales are in a downtrend. The last reported quarter had earnings down only slightly from a year ago. We will get updated in a few weeks on the latest quarter. The company has stated that they are not necessarily interested in buying back stock although they have a buyback in place. I get a good feeling that this company is well run. They have $6 a share in cash with NO DEBT. They have backlog of work that they hope to turn into actual orders when the steel/oil industries open up their purses. They hope to use some of their available $62M to purchase another company. This is the type of company that you have to buy before everyone else realizes they want own it, too. Also, they have said they are not reducing headcount to the bare bones as this would hurt their ability to service orders when conditions improve. That move will shave a few cents off of EPS. Shareholders in the meantime get a well run, financially prudent, dividend secure company that is biding its time until opportunity comes along. Long term, I really like this company.