Two words: Baby Boomers. We're afraid of loosing our retirement money, so we're pulling our money out of the stock market. This is forcing mutual funds to sell. There are a couple of exceptions. One is AAPL, which is undervalued and obviously still growing. The other is heavily shorted stocks undergoing a short squeeze. Why RRD doesn't fall into into the short squeeze category is beyond me. Maybe th bottom is $10? Maybe the bottom is when RRD cuts the dividend and starts buying back shares? Just kidding on that last sentence. On the other hand, in 2005 I told my psychiatrist that I was thinking about selling my house because I was afraid housing prices would drop and he told me I was nuts. Disclosure: I am long RRD through some inherited shares from an uncle who worked at RRD.
Thanks for your input. I got some more news that supports your view.
Stock Investors Bid Up Shares of RR Donnelley, Up 4.9%
59 minutes ago - Financial News Network Online - Market Movers via Comtex
RR Donnelley (NYSE:RRD) is a company whose shares are active, trading 4.9% higher to $12.02. The S&P is trading lower by 0.4% to 1,339 and the Dow is trading 0.4% lower to 12,809.
RR Donnelley has overhead space with shares priced $12.02, or 33.2% below the average consensus analyst price target of $18.00. The stock should find initial resistance at its 50-day moving average (MA) of $13.78 and further resistance at its 200-day MA of $16.37.
personally my retirement fund is up 20% this yr excluding RRD and yes, the short seller does pay the dividend. RRD has sufficient cash flow to support the dividend for a while but the book plants have little work, print continues to shrink and no outside of W Wacker thinks RRD mgmt has a clue. I bought some last week but I think it sucks as a long term investment
If SHORT's pay the dividend amount, then it is in a way good for the company as 14% of the Dividend is paid by the SHORTS. Long term you never know how things change. Sometimes the big players stay and the small players close or change the business. Also, it must be considered that the business (like RRD) has the leverage to acquire new technologies and diversify.
lol .. I am wondering how does the SHORT positions considered in a stock that gives a dividend (about 9% for RRD) . A shareholder(LONG) receives dividends. How about the shareholders with SHORT positions. Are they charged ????