what's the deal with this dive. I can't believe that this stock isn't going to take a major upswing in the near future. It's just too good to stay down much longer. I presently hold some and have no intention of selling any off.
I would suspect that the "worry" has to do with the fact that the managers are seeing the value of their stock and ESSOP going the wrong way. Note that OR posted an increase of 6.3% over 3rdQ 97; however the investment community (not OR management) had forecast higher earnings.EPSwas .51 vs .48 but analysts expected .54.Does this indicate a problem in the company or in the investment community? I'm not sellng and would buy more if I had cash. Believe that Warren Buffet's comments on the market come into play here vis-a-vis the market being no indication of the value of a company and that low prices mean good companies go on sale.
Check out the insider moves. Is the "Z" man bailing? He exercises options at almost $5 and dumps 18,000 shares for $23.50. Why did he not exercise and dump when stock was 29-30. I know he knows something but what? Here I sit with a potential bath.
Don't know that I'd get too concerned. Note that the date this took place was also a date for paying estimated tax. Also, exercise of options requires immediate payment of income tax at ordinary income rates, not capital gains. So, he has to pay the purchase and the tax all at once.He probably wishes he had done this in April. Note that another top exec exercised options and kept them.