Post by
Carlos66 on Oct 22, 2015 10:31am
Sector is tainted; so....
....after the shorts have had their day(s) what then? What will propel the stock upwards?
Goodwill...yeah right!!
Bad news is seldom a one thing, one day event.
---1st we had a US pharma company bragging about the price increase of their products (I'll bet he & everybody else wished he could take back what he said because he opened a can of worms/scrutiny), then we have a US politician speak her mind (& to the electorate), then we had a US hedge fund voice its concerns (self-serving), then we had a US regulator speak out (probably spurred on by other concerned politicians) & now we have a Quebec regulator joining in.
---you can use here any saying you want....where there's smoke there's fire, a snowball going downhill, being tarred with the same brush etc., but when one stock/company in a sector stumbles & loses respect, immediately the others in the sector are now suspect & once you lose faith with the investing public it takes a long time to get it back. Even the spectre of Enron was mentioned by someone yesterday in connection with VRX's troubles. That's not good.
Other examples....a company sees a reduction of sales in China; so everybody must be in trouble or when a tech company see a reduction in chip sales all companies must be in the same state.
Go figure.
carlos
Comment by
visionaryfool on Oct 22, 2015 10:37am
Company's cash flow will speak for itself. Next quarter when the market realises this business is killing it, overhang won't be as big of a concern.