sherlock...there doesn;t have to be a reason. I know you have bought into CNBC's and Bloombergs bs that there is a rhyme and reason everyday for every stock......but alas, there is not. It just takes one fund unloading their block to bring a stock with this small of a float down 9%.
If they want out, they go out and if it is big enough and not enough buyers on that particular day, then the stock will go down significantly on NO NEWS. It is their opinion that they want to take a profit.
An analogy would be lets say you own a pizza store and its worth 200,000 dollars and some guy comes in on any day and says "I'll offer you 160,000 or whatever number below 200,000. Do you have to take it if you believe your business is worth more? NO!
So whats the difference in the stock market. Today they are for whatever reason significantly undervaluing our business. If you need the money today, then yes, you're screwed. But if you have plenty of time...then who gives a $$$$ as I have already shown, in time, one gets a real value for their business in time.
I looked too and found no news. It was odd that the magnitude was so large and volume twice the average. I wonder if algorithms triggered sell signals after the 50 MA break and Best Buy news did not help
Everyone is so focused on the shorts, including myself, that this would also make sense. They don't have to announce chances until end of Q, so unloading now for cash at market height and ST or LT gains would make sense - gotta make their .5-2%. Would match the volume spike as well...simply more sellers than buyers. Good buying opportunity though for medium to LT.
Analysts move stocks after the fact, not before. Jeffreys and the other cheerleaders have no clue why the stock dropped big today....but here's a clue....Xmas holiday sales were disappointing, even with the cold weather.
I doubt this is what reduced the stock 9% in a day and 15% in a week as this has sunk from 88 to 75. No real reason for the drop as far as real "news." Best guess is many new shorts entered after last report showed a substantial drop in short interest. Combine that with sellers and likely stop orders that were hit as well as a loss of support at 80, and you have us sitting where we are now. Guessing this will probably have a second day of sink to 72-73 if it breaks 75 support, and then rebounds as shorts begin to cover and take profits before they enter a prisoner's dilemma.
Personally, I used the opportunity to add some March $85 strike calls at about 3.50 each overall. Worst case is I hold through earnings, but nothing has changed with the company - sales have been strong and the margins are solid.