This stock is a prime one to short now. I shorted 5000 shares at 8 1/2. I will cover when it gets to 6. Don't think it will go that low think again. Anyone who has bought this stock in the last couple years is losing money now and that will cause more and more to bail out. This is a good company but it will take a while for it to rebound. I'm happy with all these 1/8 a day down moves. Panic selling will start causing a possible 1 1/2 dollar down day. Short now to recoup your losses.
a stock like WHC in the $8 area is VERY RISKY. You might win if enough stockholders panic and in their zeal to get out there aren't enough buyers. Then $6 is possible. But not probable in my opinion. Too close to book and a very low P/E ratio. WHC was an outstanding short at $30. That was why I didn't start buying WHC until around $15. Turned out to be very bad timing. So, dollar cost averaging is the way to get out. The only way for longs to be killed is if WHC is going into bankruptcy. Is that going to happen? I don't think so. And if there is no serious problem with WHC except adverse market psychology, the price will rise and then the shorts will really sweat it out in a classic short squeeze. IRIDIUM shorts learned about it when the stock went from $5 to about $16 in a matter of two days. It isn't all fun on the short side. Be careful.
I have no position in WHC. I've actually owned the stock in the past 9and made money on it)and I'm waiting for a re-entry point. If I had the inclination to short a stock (I never have nor ever will) I could find many more profitable shorts than WHC. You may be right about the stock drifting lower to maybe six dollars but what is the risk associated with possibly making two or three dollars? Unlimited loss! I've been watching PZN and WHC and when I do re-enter it will be with WHC but that may be several months down the road
I agree with you, the decline in this stock is a little "long in the tooth" to make a good short candidate. I'm long WHC, and it may drift lower, but I'm not entirely convinced it will. Take a look at the chart and technicals at the link below:
WHC has been in it's own bear market since the 2nd quarter of 1996. As it is trading near it's initial support level of $7-$8 made on the run-up in the 3rd and 4th quarters of 1994, I believe IMHO that we are pretty close to the bottom.