Re: just the honest truth by: contrarianequity99 Long-Term Sentiment: Strong Buy 01/05/06 11:09 am Msg: 8111 of 8146
The stock has a miss priced in. You don't trade this cheap without those negative expectations. Any number in the ballpark of current consensous the stock will rally. This could very likely be a case of the stock rallying on a miss because it wasn't as bad as anticipated!
I'm not familar with Avondale but I assume they are sell side research. You do know that studies on sell side research have their sell recommendations outperforming their buys......
I agree that a change in mgmt would do wonders for the stock, but by NO means is a change necessary for this stock to rally. Mgmt just needs to tone down expectations so they aren't consistently under expectations. I love a stock with a decent business that has consitently under delivered. Now there are no expectations and negativity is at its highest, people are bailing and it creates an excellant buying opportunity. If you buy this stock in a year you shouldn't be disappointed.