Hedge Fund of One

Advice for Gencor: Don't Complain, Don't Explain

Verbosity and grammatical errors aside, I thought you explained yourself pretty well in both articles. The price did find some measure of support at the 100-day moving average and previous horizontal resistance/support line. Generally, when price falls off a cliff like that, it goes directly to strongest support. Unfortunately, that is usually just the start of a long process of decline as disappointed shareholders give up one by one. The next few days may offer a chance for short-sellers to re-load for another plunge below this support line. The damage will likely take a great deal of time and capital to undo. In their PR, I did not see management specifically state any specific "misrepresentations" or "rumors" that they thought they were rebutting. Management should focus on repairing the earnings problem instead of how "accelerated" the trading of stock can be.

Gencor: Growth Stock, Capitulation Opportunity

"Investors" with too large an unprotected position tend to say these things when they get trapped in a monstrous gap down like this. Much better stocks often drop excessively after excellent earnings reports with disappointing guidance. With the disappointing surprise they delivered, I would hate to think how much more punishment this deserving stock will have to endure before its price can even begin a "bottoming process" and final capitulation. With those twin pillars of infrastructure and ag, how could they not have failed to execute?