Hartmarx insider buys stands out this week. See http://geeksurl.com/hhb. Best known as a maker of tailored clothing, Hartmarx's stock has become very cheap, if you believe analysts' projections. They see earnings expanding by 35% next year, giving the company a forward P/E of 8.
Sometimes, insiders are buying for all the right reasons. CEO Homi Patel apparently considers the blip temporary -- he bought 10,000 stubs on the open market last week.
Relatively high volume and continuing price decrease over the last two weeks inplies a 'gotcha' is around the corner. The observeables imply that HMX is a screaming bargain but it keeps falling with high volume. Be very careful of any overt acts which don't cost much, possibly designed to suck in the unwary in an effort to get the price up.
I hope by now you have come to the realization that the hype and the incompetent (if not dishonest) analysts only cost you money.
While I agree that the stock will reach $10 again at some point, I suspect that it will fall to the $5 to $5.50 range before then.
I had expected, based upon the company's earnings outlook reaffirmation in mid-April, that the Q2 results would be very good. Unfortunately, the company produced results that can only be described as terrible, given their announced expectations.
Until the company can demonstrate that it has recovered its upward momentum in earnings with a favorable report in Q3, there is now reason for the stock to trade at multiples above 10 or 11.
That puts the stock at a price of $5.00 to $6.00, given the company's EPS forecast of .50 to .55 for 2006.
Keep in mind that the core business is down sharply in earnings compared to last year.
Take away the Simply Blue results and the rest of the company was down more than 50% in earnings for the first half, and sales were down about $4 million. If you substact the Misook sales and earnings, the situation is even worse.
This stock will likely trade sideways to down until some event (an acquisition or good earnings reports) gives investors a reason to reestablish positions. Next earnings won't be out until the end of October, so that's a long time to go until we are likely to see some reason for optimism.