RE:I don't see a bottom heretamaracktop wrote: Where is it, and why are people suggesting this has put in a low? I don't see it. There hasn't been capitulation, or a convincing reversal, or any sign of a low whatsoever. Maybe people are just thinking "It must be the bottom, it's down from $11." Maybe people are trying to bank on hope.
The bottom is coming, that's for sure, but personally, I just don't see it yet. If it rallies from here, the rally will probably fail. Another possible scenario, one that may indicate a low, and one I haven't previously suggested, is a successful retest of the low, whenever it comes.
I'm not worried about this at all, but it may take longer than usual to rebuild, barring unforeseen news. The technical damage here is real, and probably puts the stock in a holding pattern for the time being. Maybe with swings of a point or more in either direction.
Maybe this sector is in for a dead-cat bounce. It probably is, but any bounce, however strong, will very likely be followed by a retest, unless the low is characterized by a capitulation where the stock is being dumped like everyone and their brother have just given up. That's the type of low that wouldn't necessarily retest. If that happens, it will probably recover, and continue to recover, while former shareholders who have been flushed out watch from the sidelines in disbelief.
I made a seriously bad call on the opening today, and I think I know why. More on that later. The post quoted above, taken from last Thursday, seems to have been more prescient. We're still looking for a bottom. There's been no capitulation.
I find the timing of today's announcement interesting. This is the first time ever that Xebec has announced closing an acquisition before the last day of the month. The first time. Ever.
Remember. Xebec announced 2 LOi's when they announced the Hygear acquisition.
This from the December 31 report from TD:
In Xebec’s December 8, 2020 press release, management noted a second potential acquisition with an implied total consideration of ~$25 million. No further details have been announced, aside from management’s original characterization of the business as a specialty compressed air and air treatment services company. Without any additional details, it is hard to draw any specific conclusions, but we note that aside from its relatively larger size, this acquisition would be consistent with its historical M&A strategy. I suggest that the probability of Xebec announcing another acquisition a week from now, on the last day of the month, is very high. This one will be in the $25 million range.
Today's news is already incorporated into TD's revenue projections, hence today's flashpoint from TD offered no target revision.
To my knowledge, TD has made no allowance for incremental numbers from any acquisition as yet unannounced.