DRRA

[422fwhp]

Did you sell since it broke $2.25 ?

[willey]

All is based on my anecdotal evidence...

The Dow is now headed lower. Its megaphone pattern has reached a top ( temporary? ) & shouts LOWER in coming days. The domestic auto suppliers could very well be negatively impacted by the Dow events "comin' down the pike"...

good trading to all

willey

[shawFund]

DCN, another auto part supplier, lost almost 50% today
as bankruptcy fear rises.

DRRA may just follow the sector softness. F tests year low, VC and GM are close to their year low.

Actually the whole transportation group is quite bearish including most of the marine shipping companies such as DRYS, DSX, QMAR, FRO, ... - they all have very good earnings (PE<5) and good annual dividends (10%-20%).

It traded a new year intraday llow today but bounced back some to close at $2.15
(intraday low is $1.95).

This is the third time it tested the support at $2.00-$2.10.

My take: If it can stay on $2.00-$2.10 range in the next few days (that is, if a candlestick bullish reversal signal is given in the next few days), I will initiate a position (I never bought this stock).

[shawFund]

China now is in the big debate as whether it wants to continue its policy as the world manufacturing center.

It consumes too much resources, bring too many environmental problems, etc.

It wants to bring in service oriented investment not manufacturing oriented investment now.

So, if DRRA wants to move their auto part manufacturing operation in other countries, China may not be their first choice. Mexico, Vietnam, etc may be their better choice.

[usedcasting]

Hey Shawfund, interesting statement. Basically your saying China is at full capacity in manufacturing. This is a good thing for manufacturing around the world in my view. Thanks for the insight.

China now is in the big debate as whether it wants to continue its policy as the world manufacturing center.

It consumes too much resources, bring too many environmental problems, etc.

It wants to bring in service oriented investment not manufacturing oriented investment now.

So, if DRRA wants to move their auto part manufacturing operation in other countries, China may not be their first choice. Mexico, Vietnam, etc may be their better choice.

[David Randolph]

Did you sell since it broke $2.25 ?

No, I did not. I always respect the latest instruction, and that said «HOLD», which means I'll HOLD whatever happens.

DRRA went down because of Dana's problems, defaulting on their bonds. There are serious bankruptcy fears on DCN.

I'm unease with my position on DRRA, although it is just a 5% of capital position. My mistake was trying to pick up the bottom. From now on, I shall buy high or not at all. Bottom fishing is a dangerous game.

I feel the stock is way undervalued, as Michael agrees, but my new/old trading method says that I should respect the market above all. The market says sell, I'll sell.

[la-onda]

Dura Up on Bankruptcy Approvals
Wednesday November 1, 2:33 pm ET
Dura Shares Get Boost From Bankruptcy Approvals, Shares to Be Delisted

NEW YORK (AP) -- Shares of Dura Automotive Systems Inc. rose Wednesday after the auto supplier said it received court approval of motions it submitted in its bankruptcy filing.

The Rochester Hills, Mich.-based company also said late Tuesday night that it received a delisting notice from the Nasdaq stock market, which it does not plan to appeal.
In heavy afternoon trading, Dura shares were up 13 cents, or 33.7 percent, to 51 cents on the Nasdaq. Over the past year, Dura shares have traded between 21 cents and $3.14.
The auto supplier said Monday that its U.S. and Canadian subsidiaries filed for Chapter 11 bankruptcy protection with U.S. Bankruptcy Court in Delaware. Its European and other operations outside the U.S. and Canada weren't part of the filing.
On Tuesday, Dura said it received approval of all of its "first day" motions, which company officials said will help it continue to conduct regular business under bankruptcy protection.
The approved motions will allow Dura to access $50 million of about $300 million in debtor-in-possession financing. Access to the rest of the financing is subject to approval at a final hearing on Nov. 20, Dura said.

Dura plans to use the financing to fund normal business operations and to continue its restructuring program.

Dura said it received notification Monday from the Nasdaq, informing the company of its intention to delist its stock in light of the bankruptcy filing.

Trading of Dura's coming stock will be suspended at the opening of business on Nov. 8, Dura said.