AI
Friday, June 20, 2008 6:54:41 PM
Tom,
I have some thoughts on what happened today, but let me start by saying that I don't think we have a thing to worry about - we have too much going for us for this to be a sustainable sell-off.
If you look back about a month, you will see that we hit a high of 1.11 on May 12th and declined to .87 on May 19th. Very similar percentage loss as what we have seen from the $1.268 high on June 11th to now. Did I expect it? No. But in hindsight, I can see how the chart may have been due for a reset of the technicals.
What added fuel to the fire was a large seller and some other factors instilling fear in some retail holders. Somebody unloaded a sizable position in my opinion, but with every sell, there is a buy, so someone also bought a sizable position today. It may have been prearranged at this discounted price due to the size involved. This we may never know.
Some things that may have added a little fear was where the general direction the market was headed and the updated eps estimates from DR, which are posted on Yahoo Finance. This quarter's eps was revised downward from .02 to .01, but anyone basing there decisions on that alone do not see the bigger picture. Yes, the estimated eps was lowered, but estimated revenues were increased, and the only reason for the lower eps figure were the costs associated with the Flotec acquisition, which going forward only adds to our revenues and net earnings. I think some people saw some lower eps figures and panicked. BIG MISTAKE.
Of course, there are always the MM games that add fuel to any trading action, too.
Off-shore drilling has never been more in the spotlight, and the Deep Down Family of companies is well positioned to take advantage of this. We are also on the brink of another hurricane season, which could have a dramatic impact of the momentum of share price appreciation.
Bottom line, this is going to payoff big time in the long run, so these short term swings are nothing to worry about. Great opportunities are all they really are, if you are lucky enough to time some flips or have some dry powder ready to add to your position.
The PR machine has been a little quiet lately, so hopefully Steve can help us out in that Department and help end this short-term sell-off in short order.
$1 +/- seems pretty solid to me for support, but the MMs, or what ever other factors are at play, will take control here. Once again, these factors will ultimately bring us to new highs.
Just remember the fundamentals. They control the long-term trend. And with great fundamentals in sight, traders/investors will do whatever they can to get shares at a good value.
I have a feeling next week will turn some frowns upside down.
Have a great weekend, all.
Rhino
19-0 in 2009
I have some thoughts on what happened today, but let me start by saying that I don't think we have a thing to worry about - we have too much going for us for this to be a sustainable sell-off.
If you look back about a month, you will see that we hit a high of 1.11 on May 12th and declined to .87 on May 19th. Very similar percentage loss as what we have seen from the $1.268 high on June 11th to now. Did I expect it? No. But in hindsight, I can see how the chart may have been due for a reset of the technicals.
What added fuel to the fire was a large seller and some other factors instilling fear in some retail holders. Somebody unloaded a sizable position in my opinion, but with every sell, there is a buy, so someone also bought a sizable position today. It may have been prearranged at this discounted price due to the size involved. This we may never know.
Some things that may have added a little fear was where the general direction the market was headed and the updated eps estimates from DR, which are posted on Yahoo Finance. This quarter's eps was revised downward from .02 to .01, but anyone basing there decisions on that alone do not see the bigger picture. Yes, the estimated eps was lowered, but estimated revenues were increased, and the only reason for the lower eps figure were the costs associated with the Flotec acquisition, which going forward only adds to our revenues and net earnings. I think some people saw some lower eps figures and panicked. BIG MISTAKE.
Of course, there are always the MM games that add fuel to any trading action, too.
Off-shore drilling has never been more in the spotlight, and the Deep Down Family of companies is well positioned to take advantage of this. We are also on the brink of another hurricane season, which could have a dramatic impact of the momentum of share price appreciation.
Bottom line, this is going to payoff big time in the long run, so these short term swings are nothing to worry about. Great opportunities are all they really are, if you are lucky enough to time some flips or have some dry powder ready to add to your position.
The PR machine has been a little quiet lately, so hopefully Steve can help us out in that Department and help end this short-term sell-off in short order.
$1 +/- seems pretty solid to me for support, but the MMs, or what ever other factors are at play, will take control here. Once again, these factors will ultimately bring us to new highs.
Just remember the fundamentals. They control the long-term trend. And with great fundamentals in sight, traders/investors will do whatever they can to get shares at a good value.
I have a feeling next week will turn some frowns upside down.
Have a great weekend, all.
Rhino
19-0 in 2009
