ALWAYS buy on bad news that knocks a stock down like this.
Or, almost always.
I sold a boatload of the September $2.50 puts at 34 cents today. I break even, even if the stock drops to $2.16, in the next 6 weeks. That's about as close to "free money," as it gets, in my book. (Even during the absurd bankruptcy scare, of a few weeks ago, we only got as low as $2.18.)
It may trade lower, initially, at Monday's opening, with "throw in the towel" types selling right on the opening....but I think this is otherwise a near term bottom, and we'll trade back up to $2.75, or higher, by the end of next week.
This company still has too much liquidity, for anyone to be fretting about any impending liquidity issues. Magnacca has TIME. And time is money. Q3 sucked, no doubt. But they have time to turn it around, and I have been impressed by their marketing efforts, in trying to make this company cool again. Yes, there is execution risk, that they fail in trying to turn it around. But you are more than compensated for that, at the current $2.57 price. Meanwhile, this is a taste tempting bid for private equity to come in with a low ball bid.
Long You'll be lucky if you make it on this one. Institutions are going to dump any losers and there holding are due in days. Most will not pay with this risk.
Best to move your funds to RAD. recently voted great American turn around story. There SSS and profits and upgrades and Chart show this to be true.
If my money were not locked up then would have jumped in. Unfortunately I have to wait 3 days between trades due to a stupid 15.00 free ride violation. . If this happened yesterday then would have been in. Guess I left due to the negative board And a stock that I like but may go deeper than that.
There is a secret to RSH and making money and it is not being stupid and selling at 2.65 like I did. You will easily quick sell this stock and make money with your other money on a RSH hold. The combination is smart at the 2.53 block deal with holdings.
If people were smart they would buy this stock. I will probably get back in but at 20K in shares..... Still a little green here and timid. Lot's to learn. If only these people would realize you invest.. A gambler is a fool and an investor is someome who knows the facts. Probably why I left - not knowing all the facts.
I quick review of your past performance concludess things have not always gone the way you planned. Your post sounded all logical but honestly your in the gullable gambler camp. Ignore the information at hand if you like as your gambling addiction overwhelms logic but be sure__________One PR can send this stock sub dollar range in 90 seconds.