The stock could touch 18 before bouncing back. The industry in general is out of favor. For wise investors that usually indicates a good buying opportunity. I would look for positive news this week. The world is not coming to an end. The demand for commerical and IT business is very strong. With 55% of the business being IT we will probably have a spinoff soon. The players are in place. Ardixon the end is in sight. It is that type of attitude that will cause you to panic and sell. Hang in there-your rewards will come.
Sorry for the tone of my message, but it is difficult not to panic when I see the increasingly eroding value of what I had been led to believe was a solid investment. My paper loss is already nearly 40% of what I had invested just a few short weeks ago-- and this in a supposedly sound, growing company with few if any problems. It is beyond my understanding how Wall Street could be so merciless to such a company.
The real cruncher is that to buy STAF, I sold my position in a company that has no sales, no product on the market, and recent issues of a questionable nature, including a very unfavorable write-up in the WSJ. While STAF has decreased 50% since my initial investment, the other company has actually gone up! Go figure!
If it's any consolation, most of the large-cap stocks that I have been following have also taken big hits recently, including Microsoft (down 25% since its recent high), Wal-Mart (down 10 in the last few days), and Sun Microsystems (down to 39 from a recent high of 53). While I can understand why MSFT took a hit because of its legal problems and its inflated P/E, I can't figure out what went wrong with the other two. Or what's going on with STAF, for that matter.
I agree. I too am down over 40% and have a very large position with the company. For what it's worth, my Texas connection has informed me of a large acquisition in Houston. An IT/Commercial staffing company with sales of 17 million plus. This is an excellent area for Staffmark to expand. We looked at this area when we had thoughts of expansion. This is not inside information. This deal has closed and it is in StaffMark's court to release it to the press. The company is on track and has delivered everything they have promised and more. Let's keep our fingers crossed. I think we have seen the bottom of this mess. Good luck to all!