Any thoughts, you ask: Yes, yesterday's bloodbath was scary. However, I would say it's a great opportunity. So long as there isn't a huge surprise one way or another over the next few quarters, its downside is nine-dollars-and-change, and its upside is back up to fifteen bucks per share. So based on yesterdays closing price of $10.50, the downside is about 10% and the upside is more than 40%, and you earn a 3.6% dividend yield for the next few quarters while you wait for that to play out.
I too have owned this stock for a nice profit in the past. I've bought this in the low-teens/high-single digits and sold it in the mid-teens a couple times since 2010... I think I am going to go to the well one more time and buy down here around $10.70ish, and see if I can't get myself yet another 25-50% return. The quarter wasn't THAT BAD to warrant a 30% drop today.
There must be a large shareholder or institution that is trying to liquidate a sizable position. There just aren't enough buyers to offset the supply being thrown out to the market at any price. Don't try to put in a bid until it bounces off a bottom and holds it for at least a day or two.
Another dividend check on the 500 shares I have left. I keep selling 100 shares at a time as it goes higher. I will sell until I am playing with the houses money, then I can just enjoy those dividend checks for all of time without ever worrying about losing money on my AEO investment. That's how you win the game!
Wow the stock's down 9% on just 200 shares traded... wondering where the buying demand is. SMDM's just trading at a few times earnings, but it has fallen from the 17c per share where it's spent most of the spring to just 14.5c per share now. It's cheap, but no buyers.