Up another 10% on strong volume proves to be
another great day for ZQK. An added bonus...ZQK actually
issued another press release! I guess some of the posts
are actually working. McKnight is actually attempting
to communicate with the shareholders....great, keep
Technically, we are sitting right on
the 50 DMA, and historically, ZQK has gone over the
50 DMA as it approaches the earnings release. We may
see another few days on the upside, and IMHO, reach
the 15-16 range prior to earnings. I doubt very much
we will see 20 prior to earnings. Where it goes
after earnings are posted will depend upon what
earnings actually are. The whisper number is .21, with
analysts looking for .17 per share. Like I said earlier,
unless ZQK can post a number in excess of .20, look for
the stock to slide back.
Robert McKnight Jr.
Michael H. Gray (a.k.a. Restaurant Man)Also president of
St. John's knits for 5 years (a fact that might have
been left out).
One of the sites I check now has the whisper
number at $0.21. When I checked it a week ago they only
had $0.19. Does this increase mean anything? I would
be stoked to see $0.21 but I'm not very hopeful. The
other site I check still has the whisper number at
$0.18. That seems much more likely.
<< If ZQK buys back all of the planned 2
million shares does that increase earnings per share?
Yep. By about 9%, based on the 22,400,739 shares
Although I'd be surprised if they
actually did buy back 2 million shares. Most companies
that announce those "up to x million shares" don't
ever buy back that much. Mostly just a PR gesture, I
BTW, a .21 "whisper" number is considerably more than
the .17 estimate. I am way suspicious of "whisper"
numbers. Pure fiction, I think.
<< We may see another few days on the
upside, and IMHO, reach the 15-16 range prior to
earnings. I doubt very much we will see 20 prior to
earnings. Where it goes after earnings are posted will
depend upon what earnings actually are.
Sooo.. what's your strategy? Lighten up at 15-16, or
hold for the ultimate victory?
Well since you asked, here's my opinion. ZQK has,
in the past two quarters, enjoyed a short term rise
in the price prior to earnings. Immediately after
the earnings were posted, the stock began a sudden,
and steady decline. There's no doubt that investors
were greatly disappointed with the results.
I said earlier, today, ZQK is sitting right on top
of the 50 DMA. If there is going to be an earnings
run, then we could see movement up to somewhere around
15-16. At least this is what we saw in the past two
quarters. If you believe that ZQK will post a number better
than .20, then hold, since this may be an indication
that the trend is turning. If not, then sell your
shares prior to earnings being posted. A number at or
below .17 is further confirmation that sales are
slowing, and the air will be let out of the baloon.
For ZQK to post a number in excess of .20 per share,
IMHO, will be very difficult. The past two quarters
have been tough for ZQK. Huge receivables, declining
inventory, pre-shipments, small cash balances, increasing
debt, and a slowing demand for Roxy add up to difficult
times. Even the estimate of .17 may be a stretch, but
ZQK seems to meet the analysts estimates each
quarter. Even so, that's not what the street wants to see.
From here on out, ZQK must post "blow out" numbers for
the stock to rise back to the 20's. Only time will
OK we hit bottom and now it is time to stay in it
and ride! At the mall last night I noticed alot of
cool quiksilver stuff and its going to be hot this
summer - I'm staying in til 24 - then I'll take my
profits and invest in the next "Value" play