Wednesday, September 12, 2007

BRLC: Train wreck

I'm glad that my risky position in BRLC was very limited. When it reported earnings today, the company pretty much matched this quarter's earnings but revised downward for the year.

The stock, which is known for volatility, dropped 25% afterhours. I think that that drop is an overreaction, and it will hopefully open higher tomorrow.

Long term, the company is fundamentally fine, in my opinion. In the earnings report, they came in at $.48/share for this year's earnings. As a $5 stock, as it's currently priced, it's trading at just a 10 P/E. The freak-out sell-off seems a little extreme, so hopefully, for investors with bigger positions than me, it will recover in the short term. However, I have no doubts that my investment will pay off in the long term; I buy for the future.

Elsewhere, the market ended flat as oil topped $80/barrel, after being up for most of the day.

I'll post another stock analysis soon - I've gotten too caught up caring about BRLC soon, instead of just letting it run its crazy course in the short term.

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