When I worked for an equity hedge fund, we had a simple saying around the office - "When in doubt, sell it out". In other words, we often felt that if we had any real uncertainty about a company's prospects, it just did not pay to hold on and hope for the best. After all, the cost of selling a stock ahead of potential bad news and buying it back later if we were wrong was often just pennies a share; far less than holding it through bad news.
Perhaps that is what holders of Ritchie Bros. Auctioneers (NYSE:RBA) were thinking yesterday. The stock dropped sharply on high volume after the company announced a mid-quarter update call after the close on Thursday. While some companies make a habit of mid-quarter updates, Ritchie Bros. is not one of them. What's more, mid-quarter updates are often much like getting a call from your lawyer saying "we need to talk" - it is almost never good news.
For the full story, please continue on to:
http://stocks.investopedia.com/stock-analysis/2010/Ritchie-Bros-Feels-The-Hammer-RBA-BID-EBAY-CAT0715.aspx
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