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Same thing happened to Denny's ...ticker..DENN.Denny's this quarter created Deferred tax assets on balance sheet(reduction in valuation reserves for deferred tax assets).Stock went up on earnings announcement but has come down after that announcement.I agree that retail investors are likely to be confused buy this shuffling of assets like deferred tax assets.Confusion creates uncertainty and unexpected price moves and thus opportunities for some.
What about lower future earnings forecast?What happens when analysts cut thie estimates down to reflect management's lowered diluted EPS numbers?
Watch for EPS estimates..They are being lowered as you see on Yahoo finance earning estimates.How far these estimates will be loweed from the current levels would be important signal for stock decline to stop.Also there has not been any insiders buying...or stock buyback announcement by firm (Is there any?).What are they waiting for?Perhaps a better (lower) entry point!