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Re: wapsi post# 948

Monday, 02/06/2012 4:54:14 PM

Monday, February 06, 2012 4:54:14 PM

Post# of 5847
Well no doubt that is a very real possibility..the only issue with that possibility is that it there's no record of insider buying anywhere, which makes it speculation at this point. And in terms of speculation, I'd rather lean to the side with the least potential consequences.

I have no doubt that the stock will reverse, that seems pretty obvious to me. I do have doubt that this is a "true" reversal. Afterall, Q4 earnings are expected here next week Monday, and there's still the matter of the split. If the earnings are bad (which all signs point to yes) you better believe whoever loaded up will sell them off. Once that happens the stock will return to its normal levels until after the split.

My point is there is no fundamental reason for a reversal *yet*. Anything the company can do to turn itself around wont happen for a good few months (barring business miracles). This, to me, looks like a profit swing pure and simple.

The only way to know this is a confirmed reversal is when the selling starts (as it always does). If it turns out to be a simple market correction, grats on the reversal. If it crashes a good 50% on high volume, well..that sucks. Course by then its too late, so you have to decide now whether

1) You'll take profits this week before earnings come out

or

2) You'll go real long (months or more)


If this is a long-term investment for anyone, yeah I'd recommend it. If you dont' want to be holding a bag for a few months i'd sell it while its strong. I'm not *in* the stock myself for the reason that I wasn't going to be home in order to trade a 25% swing.
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