I believe the only "funny business" going on at the close with Timken was the fact that a 38,600 share block was being shopped around in the last 15 minutes of the trading day, causing the stock to get weak right at the end. Once this block traded, it is only normal for the stock to lift slighty. A block of this size with TKR's liquidity will affect the stock price, at least temporarily. Secondly, a company is not allowed to buy back their shares in the first half-hour or the last half-hour of each days trading, to prevent them from being able to "mark" the stock price. I suppose it is possible an insider could have bought 1,000 shares right at the end to ensure a $15 close.
The momentum is so negative on TKR right now it doesn't matter how "cheap" the stock is on fundamental/statistical measures. The stock is most likely headed lower, in spite of its "cheapness."
I waited patiently for this "blue chip" all Summer, then went all the way 500 share at 15.375. I thought I finally did a stock correctly, but now it is into the 13's on no news. No other blue chip that i see has been beaten this bad. It is like Merck going from its 139 high to 45. What gives? Do I sell now before a 10% loss becomes 40% (been there, done that and do not ever wish to repeat the ride). What about flight to quality. Isnt TKR quality? It is held by many conservative funds incl. Blue Chip Value. Thanks
The past yard sticks no longer apply. industrial stocks are being driven down to levels not seen in years by a crushing deflation that will impact the wider economy in a dramatic way despite the nonsense uttered by the commentators. TKR is an excellent long term value here and I personally bought some recently. But being that said the prices may well move lower over the next weeks and perhaps months as earning deteriorate and PE ratios rise. If your time horizen is months then expect a rocky course with perhaps a serious spike down and a great opportunity to buy some more. I think though that in a few years, the investment will pay off perhaps big-time.