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These guys are in trouble..

February 21st, 2011 · No Comments

Not so tasty anymore, a graph from hell and an RSI of 11…

Dead cat bounce from Friday’s close at $2.39? We don’t think so. Realistically, the only positive that could happen is if the company is sold. There is just too much debt, and not enough earnings to cover it and only a faint hope that this will happen anytime soon.

What is one to do? It’s do or die. One idea would be selling short with a few call options as protection for a take-over. For added income, you can sell puts. Just a suggestion, because it’s not likely to be terribly profitable as there is already quite a bit of disaster priced in and the stock really is heavily oversold.

We’ll just keep an eye on it, for the moment

Tags: Technical Trading Ideas