I agree. . . that is one of the things that has been sort of missing from this story so far (unless I missed it)
Don't read too much into all of the comments that have appered here lately, green_side_up...
These random comments are coming from bogus spam posters / daytraders that hit YAHOO! message boards with tons of b.s. messages whenever certain stocks have new news, volume spikes and share price swings... most of these recen posters have no clue what CLRX even does.
I sold my 1/3rd of a position right away after this quarter's earnings... NIP you were right on target with your assessment of BODY
Merely making an observation about HOTT.. from a floor of under $4.00 it ultimately rose more than 2.5x to $14.00
Just eyeballing the charts of the tickers you mention I notice that, while these companies were not bought out, their shares ultimately found a floor and did not continue to deteriorate:
PSUN today at 2.75 has doubled from its one-year low of 1.36
BEBE today at 5.87 is up 70% from its one-year low of 3.50
WTSL today at 3.70 is up about 40% from its one-year low af around 2.60
Back to BODY -- Personally I am not in any rush here. I am waiting before adding more shares (I have 1/3rd of a postion and will wait at least until after this qtr's earnings call if not longer before doing more).
To answer your last question, whether I hold or add more to a position when the company's shares continue to drop all boils down to: (1) my level of conviction and (2) my perception of risk/reward
What ultimately ever happened with Hot Topic? Oh yeah, I remember now:
"Hot Topic Inc. (HOTT), the operator of more than 800 stores selling clothing, accessories and music to teens, agreed to be bought by private-equity firm Sycamore Partners for about $600 million. The deal was unanimously approved by Hot Topic’s board and will require shareholder and regulatory approval, the companies said today in a statement. The offer of $14 a share is 30 percent higher than Hot Topic’s closing price yesterday."
I've noticed anecdotally that the Park Ave and 33rd Crumbs has started to experience a pick up in traffic, it seems primarily driven by coffee and the Starbucks connection--they are offering frequent purchase cards (buy ten cups of coffee and then get one cup of coffee and a cupcake free)--not sure when or how this will translate into sales revenue, not to mention operating profit, but it is an encouraging first step if this is happening throughout their system ... will be interesting to see how their same store sales trend in 3Q and 4Q (last I heard they were still expecting negative comps)
like you thought process... I hold 1/3rd of a full position here and will be patient in adding the remaining 2/3rds... thanks!
Is convertible arbitrage driving the increase due to the recent debt deal? Arbs could be going long the converts and short equity -- not necessarily for fundamental reasons (or am i totally clueless, which i have been told many times before)
Indeed, thanks for the heads up on Foundation Medicine...
The risk-reward equation for CLRX is very very intriguing...