The question of today is was last nights announcement enough to push this below it's 52 week low?Did we get materially new information that warrants trading and closing below very strong support? I'd guess no but wish I had put some money behind that. I was in this just last week and may get back in today
I read last night as:
1) same store sales down - which we had no modeling that showed a 3Q recovery in it so we expected that. Was it above the range of last two quarters? No. So likely in line with analysts assumptions. Note: they didn't state whether it was the higher end or lower end of the range.
2) Earnings down significantly from prior year - analyst projections are at 33 cents per share down from 47 cents in prior year. That's -30%. They didn't declare a loss so it's not -100%. So was 30% enough to call this material? You'd hope so. But either way we don't know any better than we did before the announcement as we were projecting a materially less earnings quarter to begin with.
3) restructuring - expected and a positive. Get some new talent with high motivations to turn this thing around. The more consistent mgmt, the less positve change will occur,
Lastly, dont companies normally provide a basis for a restructuring decision? Did they merely just reiterate and confirm what most analysts already had in their models, but re-emphasized their woes so that the decision was understood by the community.
I'm not convinced we have news that makes us close below this huge line of support. Kicking myself for not seeing this late yesterday as I would've bought.