Either they are going to build planes with balsa and sell beer in tin, or there is something odd with this stock. Here is the chart;
It is unlikely that the stock would go below the recent $4 low and accordingly I would prefer to contemplate a bullish outcome. However that does not mean that the stock cannot go sideways for a long time. With a P/E at 23 there certainly is still room for a drop, albeit probable not below $4. However if you look at it on a semi-log scale anything still looks plausible.
The semi-log scale is on the right. Clearly there still is “room” on the downside, making the notion that the move from the low is simple a 4th wave all the more plausible. Use a stop at $14 or so. By the way we did recommend the stock below $5, see below.
