Those who bought at much higher prices are obviously suffering.
But, would you say that it's a mistake to enter now, at ~$4.50? Especially when buying is done in stages and not in lump sum fashion?
"It's one of those things you have to take into consideration. Worst thing for us longs would be if these emotional sellers are right. It could happen."
You say "emotional sellers"?
It's the longs who are in the grip of emotions. Because after selecting a stock and perhaps like many who post here continue buying it and averaging down only to watch it continue heading south to further all time lows -- and you think about selling but don't, perhaps buy instead in utter disbelief, then keep repeating the process further and further down you go thru the emotion called remorse. Don't most longs regret buying this stock? You can't fool yourself, can you?
In my experience, the best (only) defence is superior research and understanding.
I search for those rare instances when the market is wrong, in my judgement (for whatever reasons, liquidity squeeze, panic induced overselling, special distress situations such as chp 11, etc.), for outsized opportunities.
I happen to agree with you.
But, the past 4 years has been a huge battle between rational vs emotional forces, in the market as a whole. Very interesting times.
At this moment, regarding FTR in particular, emotional forces are pushing the shareprice down.
We'll soon see in Q4 results what the facts are.
If you read the comment about AT&T's landlines, they said they were stabilizing.
Plain and simple this price may be too good to be true, like I said before short hedge funds are scared.
I think the earnings could pop this thing up a dollar when they come out.
options are dropping FTR 110 contracts on the Feb $4's And whoever that is is also buying the long stock fter driving it down Yesterday the $3's were trading If my theory is incorrect then someone is really stupid selling /buying $3 calls
the people playing the share price may be a little more sophisticated than that: i can picture that after the shorts banquet, they'll be back for seconds as longs.
this stocks price seems to be entirely sentiment-driven, with little buying interest to support it. so if you can drive down the share price in a negative environment for the sector, it's like taking candy from a baby picking up all those cheap shares.
the company will likely declare the dividend again next week, and we'll hopefully see another runup to the ex-date and earnings.