No. of Recommendations: 6
It is clear that the market really truly hates this stock.
The simplest observation is that earnings are expected to be lower next year. Who wants falling earnings?
And, to be fair, it isn't a firm that screams "outstanding management" lately. And their communications are so mealy-mouthed that it makes you queasy.
It's as if they actively want to make sure that nobody understands what they actually do for a living.
I own quite a bit of it. Fat lot of good it has done me : )
But when a stock is ostensibly super cheap and unloved, there are often two kinds of surprises.
Unpleasant ones, to which the stock price reacts mildly.
And pleasant ones, to which the stock price reacts to strongly.
Shouldnt this be one of those cases where you buy something really cheap and good things happen eventually?
I think that counts as a definite "maybe". The future is uncertain. But the odds are good.
At this point, I think of position in a business like this, at this price, like a lottery ticket.
Heads I win a lot, tails I don't lose much.
A broad portfolio of uncorrelated positions like this would likely to extremely well over time. But don't bet the farm.
There is no point buying options, the usual way to achieve that situation...the stock is cheap enough that it's as cheap as an option now, and won't expire.
Jim
