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.
- They had to amend its debt convenants once again..
- The debt (at $114.5M) to equity ratio is a whopping 7:1
- Curiously, it isn’t widely shorted 445K out of 8.58M
- Primostocks seriously kicked the tires and did come away happier (they’re short..)
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