Bought a light position at $1.79 Contrary to billyr2's last post, I took a light position in DEE today. My stop is quite tight ($1.71) because I'm following a trendline from the low down in the $1.30's (October) to last week's low. The January low was the same as last week's low, and both bounces off those lows had some volume, giving conviction to the moves. Personally, I think a huge continuation-type head & shoulders pattern is forming, and I'm looking for this last "shoulder" to hit $2.20'ish this quater. If it breaks out, by the end of the quarter, it would suggest a forcasted price of ~$2.80 - $3.00.
But, I agree with billyr2 that debt is a bit of an issue. However, there's good institutional holdings, you're paying book value for DEE, and DEE has both positive cash flow, and free cash flow. That's really great, because where there's cash flow, financing is much easier to get (which they may need to pay off some accounts payable, etc.).
I don't think
.75 fairly reflects the value here, but I certainly won't be hanging in here to let that level come! Like I said, I have a light light light position here, and my stop is $1.71.
Let's see what happens, anyway!
~BT