It plays out over and over and over again. You follow your Messiah around and buy into companies that you really don't know all that much about. At some point the price moves up after enough followers jump on board. Then reality hits and the shares plunge.
Just like LEE Enterprises, which was 30 cents after the crisis in 08 and 09. It then went to $5, then down to 60 cents, now close to $3. Whatever. I bought LEE in the summer of 09 at 55 cents and sold at $1.35. I saw what the idiot CEO was doing (pumper and fluffer of Press Releases).
HTCH is a little bit of the same thing. You wouldn't even know that this company existed if you didn't surf the Yahoo message board. Yes, it will go up, and it will go down, but you are ALWAYS at risk of a negative surprise because the company mainly exists to make money for management, and to take money from investors and shareholders (exactly like LEE).
Unless you can honestly say that you would buy the whole company if you had to invest your family money on it then you are playing a fool's game. None of you would spend hundreds of millions in cash to buy this company outright, just like you wouldn't buy LEE and take on all of the debt and liabilities.
Most of you got what you deserved here (spare me with the "I'm still up huge here"). There may be one or two of you who are actual human beings and decent investors. I hope you got out before this drop. I mean, the stock went up multiple times from the lows and the business didn't improve multiple times...lol. That is called speculation, and speculation ALWAYS equals big losses eventually. Can you name me one time in history where speculation didn't end badly? You got greedy, and today is your "surprise".
I see COBR is down 20 percent, too, on low volume. Must be a Margin Call for the Messiah.......he's figuring out what he needs to sell because he was fully invested in a phoney market. It will get worse, I can guarantee you that. People who are fully invested, let alone fully invested on margin, are making a huge mistake.
The shoe will drop on a few other debt laden companies in the portfolio, too. Rough sees ahead for all of the sheep.
Please don't come on this board with your snot nose attitude about a story you don't really understand
I agree the same traders who ran HTCH up on speculation are now running it back down on one timers that the company warned us about last quarter. Did you miss the discussion about the inventory impact and its potential one time impact on margins during the March call? Too busy telling others how smart you are?
So like the run up this is nothing more than a coordinated, pre-planned #$%$ that hedge fund trading cartels like to run on the drive stocks. WDC posted $0.15 upside earnings and guided next quarter up, and got hammered. For us long timers, it's nothing new to see hedge fund trading cartels slam the drive stocks after they report June earnings, regardless of good or bad results.
The good news is this:
1. History has shown the same traders who run the drive stocks down during the summer months run them up in the late fall and winter.
2. The factors that are expected to drive HTCH to profits over the next 6 quarters are still in tact. Maybe you would like to tell us what they are, Ace?