Today's drop is a flight to safety. There is so much fear and so much uncertainty in the market and few want to wait for this company's story to turn around right now. I hope it does but home building is not going to turn around for a significant time.
I don't think there is any home building going on right now and that means that there are virtually no sales of smoke alarms to contractors. I don't know how the HD sales for replacements are going but current sales have to be way off from last year at this time. The sales environment plus the macro environment means that it looks like a ton of very cheap stocks. The problem is that no one knows where sales are going and we are in a recession. Multiples have dropped faster than earnings but earnings are now dropping. Ihave not heard anyone call a bottom with any conviction. Monday's gains wiped out on Tues and Wed. Micro caps like this one look really cheap but so does GE and Google.
This board has really been taken over by spammers recently. If three people rate the spam posts 1 star then they wont show up using the default rating filter. It's a shame because although there are few posts here, they are usually high quality with good information.