Im Still on the stock, HOWEVER, I am for reasons NOT explained prior to their .
Fundamentally their report wasn't bad, it just missed the EPS analysist mark by 1 cent....sending GNTX down to what turns out to be a HUGE magnet level. If I would've seen it in my previous analysis, a short term (2-3) short to the level we are at now wouldn't have been a terrible idea.
Anyways, Im still long, as I have been. Up to at least 19 we go.
Bad first? Ok. Unfortunately I believe based on charting we could be part of weekly chart range landing us to a possibility of hitting around 16$ a share. Ouch.
Good? The level I have put has not been giving in to the bears easily. The bears got momentum after the earnings missed analysts, BUT, did the fundamental of the company change? They INCREASED sales by 5% Quarter over Quarter. Good sign. Their margins slipped quarter over quarter due to decreased sales costs not accounted with better production costs. Of course, this hurts income, and ultimately the EPS. It also repurchased over a million shares. Its PE holds below 15 with a payout ratio of less than 40%. It's a good value stock, and even pushing the income stock category. I don't see the company going anywhere soon, but may switch to better opportunities given we break the range and head towards 16$.