maybe its cause "someone" knows the quarter is gonna close uglier than expected? Quarter ends in a few days. It was an all-day steady decline so it doesnt seem like it would be any one specific piece of news.
A couple of analyst reports came out today. Maybe they were, ummmm, less than favorable. Remember, this stock doesnt really have any real analyst coverage. So any reports that come out that are negative..... stock will fall hard. Flip side, if any reports (in the future) come out then it should pop nicely. Presumably.
Well, you can use it as an opportunity to accumulate if you like the KKD brand, product, and business. Assuming financial results and cash flow keep improving you will be fine. This a speculative turnaround play. Don't gamble the family farm. Future growth will have to come from their small store concept.
Volume today was average. More sellers than buyers no doubt. But, the sky was not falling with folks in panic mode running for the exits.
Resistance is 2.50+/-...We blow through that...Hold on it might be a long way down. Put a stop in that range to mitigate some risk if you are playing the long side.
If you are like Skidady and think this is an absolute "POS" at the moment. Short it. Ride wave down. He appears to be vigilant on the topic based on his posts. What is your target on the downside Skidady? Do you have issue with the business, management, valuation or all three?
Glsierra - I am a new holder of KKD here on the last drop. I think we have time to accumulate a nice position if the financials keep improving. I would mitigate all downside risk around $2.50. If we get a good quarter you should be alright. Two good quarters and you will be as good as gold. Until then I would expect to be in this current range. I like the return to the core business, cost cutting, and improving cash flow. When top line growth returns you will have a nice return.
Headwinds - Sugar Costs and Unemployment aka disposable income...The company will have to overcome both in FY10. I don't think gas prices will be an issue unless Isreal and Iran get in a conflict or any more middle east conflict for that matter.