The company cited an increase in the sale of lower margin products (rough diamonds) for the fall in sales, and declining margins. We've yet to see a second quarter balance sheet.
Shares fell nearly 7 percent Friday (to $9.96) on triple the average volume....that's triple the typical 3,000 shares normally traded, hardly meaningful. The company had been on a nice run as of late, recently approaching the $11.00 mark.
We continue to hold LKI in our portfolio, and see it as a rare opportunity to own a net/net with potential and undervalued assets. Our shares are still up 28% since we took a position this past March.
Disclosure: the author owns shares of LKI.
LKI 1-yr chart: