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MikeDDKing

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MikeDDKing

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Re: MikeDDKing post# 177499

Friday, 12/12/2008 9:23:27 PM

Friday, December 12, 2008 9:23:27 PM

Post# of 275587
RHD thoughts (12/12/08 update)....

RHD is a great bounce play and more for the following reasons:

1. RHD is down over 99% for the year and is trading at near bankruptcy levels yet the company has positive cashflow from operations.

2. RHD has been paying down debt for the past several quarters and has been able to do that at a discount.

3. A hedge fund famous for taking large stakes in distressed companies became a huge shareholder in late November.
http://triangle.bizjournals.com/triangle/stories/2008/11/24/daily25.html?ana=yfcpc

4. 22% of the float is short so a short covering rally could happen.

5. RHD is a good January effect candidate because many people and funds have likely been selling it for the tax loss.

Mike

Visit my favorite boards:

SwingTrade - #board-1781
VMC Motherboard - #board-3251

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