Knuckleheads Battle Over a Vitamin Stock

Originally Published in Charting the Market 7/18/07

There are many hard and fast rules when you run money. One of which is to immediately sell the stock of any company whose auditor resigns.  Vitamin maker USANA Health Sciences (USNA-NASDAQ) saw their auditor pack it in earlier this week, which provoked the standard haircut in the stock.  Although the company concurrently delivered strong earnings, and raised guidance, it might take a well choreographed conference call Wednesday at 11:00 AM to allay the fears that are gripping shareholders.  The chart of this stock reflects the ongoing confusion, and if you think you can handicap this wacky situation either long or short then you are a better man than me.  Somebody will clean up here, and the losers will likely leave a huge stain on their office carpet. But that is Ok, Barry Minkow can clean up afterward.  This one has the rogue’s gallery involved.  no position

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