Disaster Du Jour
Today's growth stock that reported in-line results but had its stock hammered is Hansen (HANS).
The company missed EPS by a penny and reported +83% revenue growth. For that, the stock gapped down on huge volume and closed down more than -25% for the day.
Obviously, this is a huge overreaction, but not surprising given what we have witnessed this earning season. And this is the reason why I use the word "brutal" to describe some of these reactions.
I don't know how long the healing process will be for some of these stocks, but HANS is quickly becoming a great value, and that much more attractive as an acquisition candidate.
posted by J. Kahn @ 1:28 PM
2 comments
2 Comments:
Jordan you could also argue that HANS was an over-reaction (the overly extended run up), and that this is just the beginning of the correction.
I was short HANS from friday @ the close and covered today but I'd still rather short it again here as opposed to buy it.
Congrats on your short. Wish I had been there.
I still contend that if you were long before the report, its hard to see why their earnings warranted an immediate 25% haircut.
But I have no position in the stock.
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