Might be a right strategy for now if you can time the trades. I can;t nor do i want to to play that game.
Rather, I'd rather be out( or hold a small position ) and wait for clues of a move ( technically ) or hold for longer periods based on how I interpret intermediate and longer term fundamentals as they line up with technicals.
As I see it now, the down draft has placed some doubt ( but not all ) on the technicals. To me it means more time will be needed to repair the recent downward move before the next move up begins. That seems to support the timing of fundamental improvement. Estimatimates for this year are a loss of $.50/sh followed by an estimate of a loss of $.15/sh next year. Let's assume the estimates for optimistic and they lose $.25/sh. That's cutting the loss by 50% and demonstrates good progress in their goal of reaching profitability.
The improvement alone in my judgment would be enough to engender buying interest in the stock or at least a hesitancy to sell. If the succeeding quarters reflect narrowing losses higher prices will come.
Maybe I'm all wet and things break down. In that case, my holdings are not of a size to be of concern. However if my thesis is correct, I'll add more aggressively.
In the meantime, I'll wait for confirmation one way or the other over the intermediate a/o longer term.
I'm not yet discouraged by the trading behavior of recent days to change my opinion of a bullish trend beginning for form.
Mgmt does suck as you say. But I believe they have no choice now but to deliver as they've wiped out all credibility of the past years and now it's show me time.
We'll see!
Don't rule a buyout either.
