What do you believe will happen next week? I believe that the 21% drop was a over-reaction, but shorts have a good handle on this stock - for the time being. There could be a another down day on Monday, I think will end the week at 6.
Falling like a brick of tons. Rather use Optionglobe. If you're a options trader they give 2-3 trades per day that make you money. Been using them since 2008 and made 13k just last week. KKD seems like a falling knife right here..
This is a highly volatile stock. I dont see it going down much more if at all. A full $1 of the $1.48 drop on Fri was surely from shorters piling. I would expect fund mgrs/institutional investors to step in a little bit on Mon.
I think there is a better chance of a slight rebound on Mon over further decline: say 30% chance of dropping 10c or so versus 70% of a 40-50c gain. We shall see....!!!!
Mean time, there was something on the Balance Sheet that just hit me that I did not notice before.
They have done a great job in reducing debt over the past 18-24 months. KUDOS. But....
Their Accts Receivable has shot up to now ~$20M. While the Acct Receivable is only $10M. They are acting like a bank for your their vendors. What gives!?!?? Its at a "better" proportion than last year, but still. This is a major area improvement... getting working capital in check.
All depends how cheap the MM's want their shares. Weak hands need to be gone before any progress can be made. Shorts will enjoy this in the next week. I'm long but IMO there will be a decline to find the true bottem. Manipulation will take it's toll, then upside. Long story short, I say 5.50. It will take some time to sort this out.