Stock collapse
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Stock collapse Our club holds a stock, Dynacq Healthcare (DYII), that has been slowly getting negative news of late. This had been a darling find of ours having gone from our purchase price of $13 per share to nearly $26 in less than 3 months. At that time we looked at an new SSG and decided the stock was still a good value and held on. Through the negative reports and the recent annoncement by E&Y that they are withdrawing as auditors since the company lacks the internal controls to produce accurate financial statements two days ago, the stock has plummeted to $8.95 yesterday. After the close of the market our club decided to cut our losses and sell. I tried to execute the order this morning only to find that the NASDAQ is looking at delisting, and the SEC is informally investigating them. The stock now has a new symbol DYIIE during the investigation and is selling at $4.40 and falling. My question is, has anyone gone through anything like this with one of their stocks? At this time we have decided the damage is done and to ride this one out, but I'm just curious as to whether we should expect a worhtless stock at the end of this or what. Thanks, Bob |
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