What an emo overload. So rumors have it that the company is going bankrupt. Well, only if you all don't shut up. Let's not make this a self fulfilling prophecy.
So the big question is whether or not we buy in after such a massive drop in price. It's a tough one but if you're bold. The answer is yes. I have personally recorded 2 other times I have seen such an over reaction. First time it was with Nuvelo (NUVO) when the market shot it up 60 percent on news that it was to be fast tracked. It was the first time I've ever seen such a reaction so I held on until it started crashing and then bailed with a 30 percent gain. Turns out a lot of potential drugs are fast tracked. The very next day, it came right back down. Yahoo! (YHOO) shot up from 24 to 33 in one day when rumors that Microsoft would buy them out. Not so, the stock shot right back down to 22 once all the hot air escaped. I sold what I did have and shorted immediately. It was a nice double swing.
So once again we find ourselves in a similar position. This time around, after a massive drop. So what to do
I'm going to hold off on this one personally since the times are bad. Every day, more negative news is coming out of the financial sector and it's really scary. Also, with the other two stocks, it was a better time. A more stable time. So for now. I'll pass. Besides... AAPL is relatively low and the stores are elbow to elbow.
Notes:
In Portfolio: Nope
Duration: n/a
Post Mortem: It actually shot back up 5 bucks and then back down to the high 3s / low 4's.
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