I'm going to short 1k shares of SKUL tomorrow. Every earnings call, whether good or bad, sends this stock cratering. No one loves it, not even the management. I think we will see another 30% drop. I need to make back some of the money I lost when I was long.
I understand your thinking as I'm long and becoming the pessimist about this stock as well. It's short on positive news lately. Until the call I think we all have very little guideance as to what's going on at the company.
I'd like to think the CFO's purchase of 15,000 shares in mid March was some vote of confidence. He would have had a pretty clear picture of the first quarter and some indication of how the company was trending and reacting to the "makeover". Because of the insider blackout rules, he only had about 5 open days to make the purchase in March and did so without hesitation.
I don't think anything was leaked which would have dropped the share price yesterday. I remember the share price running up right before the 4Q12 earnings call....which was clearly not reflective of the call.
Sounds like a revenge trade ....... a bad idea imo. They ate the longs today, tomorrow they could have the shorts for dessert. Look at the chart, today could be spring, a dip under the TR, a shakeout. The volume wasn't that much compared to what it got under, March 8th. March 8th had 7.25 million shares. Today there was 1.37 million. But yes it has built cause for nearly 2 months and there is supply in the background, so it can go lower on lower volume. But you don't know.. If it gets back above the creek, back in the range, tomorrow then it was just a spring. Bottom line there is no trade here....no trade with reasonable risk. Furthermore, why hold thru earnings? It's like cutting the deck. Many of the dumb-money shorts will not hold thru earnings despite their braying here, which could fuel a rally tomorrow. Why not stand aside til after earnings and wait for the fireworks and then wait some more for a decent technical setup? JMO.
My whole play IS the earnings... I think they will do terrible, like they always have. Even with good numbers, some dumb exec will say something stupid. They warned on outlook last quarter for a reason. I think we will see it.