Thinly traded stocks like ADUS can be driven up, or down, inordinately, by retail investors who don't read beyond the first two lines of an earnings report. Yes, it said earnings were down 69% YOY. Yes, it said now that the company must comply with SARBOX, the internal audit found "material weakness" with an IT system for payroll, which is already being addressed. Does that mean that a company that has been in business for decades, and grew significantly over the past decade is now a DOG? NO! The analysts that follow ADUS knew that earnings would be less than last year, had predicted 26 cents (ex items), and the company turned in 32 cents (ex-items). If bechody had shorted on 3-12 before the close, congratulations (if you covered already). If you haven't covered, watch-out!
The market always over-reacts in both directions. Watch this stock go back up over the next 90 days