DIET

[1reilly]

It appears that Molly and I are going to need to continue our programs for some time. I said in my mission thread that I wondered if DIET really understood their demographics at this time. Usedcasting indicated that he felt they have a business plan they're comfortable with and I must take issue with that. I think the reluctance to issue stronger guidance is based on  their need to fine tune the FC program. Molly's comments about outsourcing the food were not as important as her comment related to flexibility in ordering meals. I think DIET will fine tune to offer flexibilty but this may take time. Are they a complete health forum that offers a total fitness program, or a source of dietary food. I have indicated that their market place is much broader than dietary food. Many singles, seniors, and healthy food addicts should be looking at this food service. However, they need to offer flexibilty in the ordering process.
I'm guessing most of the stops got taken out today.(humor)
I agree that this company is now a work in progress.
I think it's going to become a part of my long term porfolio. I have two long term portfolios, one contains stocks that I chose for their long term appeal, the other contains my mistakes that gap down 25% and I'm too stubborn to sell.
I won't be adding to this position until I see some real numbers, Management's reluctance to do that today could be they don't have any. The conference call could have been a real red flag.
My goodness this stock has cost me alot of time and money.

[tokyopua]

I think it's going to become a part of my long term porfolio. I have two long term portfolios, one contains stocks that I chose for their long term appeal, the other contains my mistakes that gap down 25% and I'm too stubborn to sell.

That is what I am going to do here too.  I took a major haircut on this one today as I was averaged in at $7.5 between long term and short term portfolios with a bit overweight in both compared to my usual buy in because of my perception of good market fundamentals (the average American needs to diet no question) and company fundamentals in addition to the bullish chart. 

So this joins INSM for me as a long term investment, I suppose I will have to hold it for a year to recap the loss.  I do now believe in the January effect for these kinds of stocks, so a year from now it should be back up and then it can be sold without short term capital gains tax (assuming its up).

For today I am just hoping it closes above a 6.04 support level, and would love to see a rally to $6.5 support somehow (wishful thinking, I know).

Good luck to all still holding!

[Lucas Scott]

I have two long term portfolios, one contains stocks that I chose for their long term appeal, the other contains my mistakes that gap down 25% and I'm too stubborn to sell.

I think most of us have those types of long-term portfolios. Looking at the 3SoF Long Term portfolio, it looks like it mostly contains the latter kind of stocks -- the mistakes. It wasn't David's intent but that's the way it has turned out. 3 of the 5 stocks are down over 10%.   

[fous]

I think it's going to become a part of my long term porfolio. I have two long term portfolios, one contains stocks that I chose for their long term appeal, the other contains my mistakes that gap down 25% and I'm too stubborn to sell.

I don't have a long term portfolio. I guess nows the time to start one.............................

-fous

[shawFund]

For me I always put a stop loss after my trade around 7%.

If you relieve the company is sound, keep close eye on it and re-enter it later at a better price.

Holding no matter what happens is another strategy.

I never bought DIET. I may start to have a position in the next few days.

[1reilly]

shawFund
I don't know what you're getting at here. If you had a stop in this morning the best price was 6.94. I doubt many stops even got filled there. Admittedly that's a hell of alot better than where it is right now. My point is keeping a close eye on this one made very little difference today. I won't buy a falling knife but my bet is this company establishes a new bottom and that's where I make a new investment decision. It sounds to me as though you've been around for awhile so I'm sure you've experienced these kind of ugly responses to other stocks. My experience is to let the dust settle and in effect that's what your doing by waiting a few days. My point is 7% was impossible today so why bring it up.

[Lucas Scott]

Best bet might be to keep loading up at intervals (aka average down) until it bottoms and sell the bounce. Like Metro pointed out earlier, DIET is way below the Bollinger bands.

Going to play Monday morning quarterback now, I have to question how DIET got put in the long term portfolio in the first place. It reacted to the earnings today the way a biotech reacts when a drug fails. Our long term holds shouldn't be that volatile. Something along the lines of a MSFT is more worthy of a long term hold because it's bulletproof. Bad news will send it down 2%. DIET turned out to be a house of cards. Like OTC stocks, it's apparantly the kind of stock you trade, not the type you buy and hold. Unfortunately we figured this out a day too late.   

[tokyopua]

Best bet might be to keep loading up at intervals (aka average down) until it bottoms and sell the bounce. Like Metro pointed out earlier, DIET is way below the Bollinger bands.

Going to play Monday morning quarterback now, I have to question how DIET got put in the long term portfolio in the first place. It reacted to the earnings today the way a biotech reacts when a drug fails. Our long term holds shouldn't be that volatile. Something along the lines of a MSFT is more worthy of a long term hold because it's bulletproof. Bad news will send it down 2%. DIET turned out to be a house of cards. Like OTC stocks, it's apparantly the kind of stock you trade, not the type you buy and hold. Unfortunately we figured this out a day too late.   

Since I lost all my February profit in DIET today, I feel a bit the same way.  However, we do still need to see if there is a bounce, because one thing that I believe is at play here that caused the biotech like loss you mention is that they reported low guidance in volatile downtrending market.  For example, look at what has been happening to larger more established semiconductor stocks like TXN the other day (1 cent below consensus earning causing a big drop), and National Semiconductor NSM today.  NSM had a great quarter, and it lost 3% today!:

http://yahoo.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?storyID=urn:newsml:reuters.com:20060309:MTFH72581_2006-03-09_21-15-02_N09188396&symbol=NSM.N&rpc=44

So this thing was like a perfect storm happening when it did.  If we had been in an up market, I think the damage would have been far less.  The long red candle today means it can go even lower tomorrow, but if employment numbers are good tomorrow and the market recovers, I think DIET does too.  Of course, its still not going to be enough for a long time to come to counter today's losses...

[shawFund]

shawFund
I don't know what you're getting at here. If you had a stop in this morning the best price was 6.94. I doubt many stops even got filled there. Admittedly that's a hell of alot better than where it is right now. My point is keeping a close eye on this one made very little difference today. I won't buy a falling knife but my bet is this company establishes a new bottom and that's where I make a new investment decision. It sounds to me as though you've been around for awhile so I'm sure you've experienced these kind of ugly responses to other stocks. My experience is to let the dust settle and in effect that's what your doing by waiting a few days. My point is 7% was impossible today so why bring it up.

Sorry for the interpretation of my post.

I have been burned many times. Recent one is on SNDK. Nov 21 2005 it gapped down from $56 to $46. But my shares stopped out at open  at $54. I only lost 2 dollars and I re-entered the stock after it tested low of $46 twice and bounced back.

For DIET, if I placed stop-loss, it will be stopped out at open. When to buy it back?

Normally I wait for it to retest its low. That is, after bottomed, it bounced  back and normally it will re-test its low or even lower before returning to uptrend. This is to let weak hands shaked out.

Severl examples:

1. STX last year
2. SNDK last year
3. SYNA last year

[shawFund]

SNDK:

[rickjust]

hi,
sorry for the loss today.
i was in with gtcb recently when the same thing happened to me.
i never play earnings any more because it is anyone's guess where it could go after the report. unless your an  investor  rather than a trader it is better to get out just before .
jmho
thanks,
maxi

[shawFund]

Continue: SYNA and ACLS

Thebest topic may be: HOW TO BUY ON GAP DOWN.

All the four companies are very good SNDK, SYNA, STX, ACLS, but mm don't want you to make money by playing tricks on it.

When most people are out, the stock starts a non-stoppable up.

[shawFund]

DIET is a good company and is making good money. It had gapped down today just like it happened for SNDK, SYNA, ACLS stocks .... before.

I expect it may have the same chart pattern and will wait for the second bottom before taking my position (it may take anywhere from 1 week to 1 month).

I do not have shares of DIET.

Even I have, I will be the first to exit today at open.
In that case, I will be worry free now and wait for better buying price.

[1reilly]

shawFund
I thought we were probably on the same wave length. I happen to agree with all the posters here. I think we all have to work together on this new project, because finding some profit here is going to be my new mission. Everyone is looking for the first bounce, I'm going to be looking for the double bottom. The first bounce is going to find a ton of sellers in my opinion. Diet just got crossed off a lot of investors list. If this isn't a house of cards we'll make money on the long side. If it is I'm going to get it back on the short side. I will bet you this. The fundamentalists won't be back until they see real numbers, the Ta boys and girls will control this stock near term. So you TA ers get to work and keep us all posted.
Mike

[Gu$tavo]

Only two comments...

1. About this "... if employment numbers are good tomorrow and the market recovers .." , if the numbers are too good ..will have another red sea , because "rates fear"

2. This is an old news but after  today reaction, it has a lot of sense..

Odyssey Value Advisors LLC Suggests eDiets Board Engage Banker to Sell Company
MONDAY, NOVEMBER 14, 2005 8:01 AM

http://bigcharts.marketwatch.com/news/articles.asp?guid={AC801780-C4B0-4920-92B2-D3690B58089F}&newsid=850400466&orig=&time=&symb=DIET&sid=178505&source=htx\http2_mw