It's that time of the year when loser stocks like EGT will be sold for tax write off purposes. A lot of people bought EGT a lot higher last spring so they will now dump EGT to lower their taxes. The end of year tax selling will drop EGT to close to $1 by December 31st. No news will be coming out to raise the stock until next spring or summer, but I don't think there will be any good news at all in 2013. I am sure I will be bashed by longs for writing all of this.
You have a very strange definition of "Loser Stocks". On 1/4/2012 EGT was closed @ .92 (split adjusted). Today is is 2.11
Not quite sure how a 2x+ qualifies as a "Loser" for 2012 - especially when you compare it to the overall market (pick ANY market index and compare).
I think that you math is WAAAaaaaay off and if we see any tax selling it will be far less than a 50% impact on PPS - too muich has improved in the business model over the last year to see that much of a fluxuation.
But, if you REALLY believe what you post is true, feel free put your money where you mouth is and short EGT *BIG* on Monday and hold until it reaches your 1.00 target on 12/31. Please post when you do so we can track your 'success'.
Lots of times I agree with what you post, but this time I don't. Most of the volume in EGT this year occurred in May-July when the average price of EGT was above $3 [adjusted price]. To me that means there are a lot of investors that are 'under water' on EGT now. I do think there will be end of year tax loss pressure this year.
I sold half my holdings in late October at $2.39 in anticipation of that. My cost basis for the rest of my stock is only $1.04 so I will hold that through the expected short term tax loss selling. I might buy again in mid January.
im not going to bash you, but i will tell you that every year for the past 5 years what you say is about to happen.. happens!! BUT; they always seem to come out of it in good shape. and they never have dropped by 50% that I can remember.... having said that, think of what is about to happen as a very good, tried and proven for 5 years running, fantastic buying oppertunity. Timing will be everything. I do not do that but have watched from the sidelines.... this is definately the buying oppertunity of the year because it just about a guarantee if history proves to be true