XING: Responses To Dutton's Calls

(Click On Chart To Enlarge)

Dutton upgraded of XING on January 16, 2007. The market's response was to break the stock out of a QUADRUPLE nested bullish pattern, and send it on its way to both the FOUR technical targets that were IN PLAY, as well as to Dutton's 20.23 target. On the first chart, January 16 is the big white candle. That upgrade was during trading, and XING soared immediately when the upgrade came out.

Dutton reiterated their Strong Buy on February 14. XING closed at 18.20. The market's response was to rally the stock for only six more days, to the 2007 top of 19.94, just below Dutton's 20.23 target.

Dutton not only wasted a bullet on that call since XING was doing fine in the rally that already was in progress from their first call, investors who bought XING at 18.20 on the recommendation can't be very happy knowing that they bought it about six days before THE TOP, for 2007. OUCH!!

Dutton reiterated their Strong Buy on June 4 after XING broke down out of the Bearish Rising Wedge, and MADE both targets that were IN PLAY: 14.52 and 12.77. XING, on June 4, was at 12.43 (the candle at the far left on the second chart).

Dutton lost a tremendous amount of credibility right there, with that June 4 call. Investors who bought XING at 18.20 on February 14 have to be thinking, "WHAT?? It sure wasn't a Strong Buy when I bought it at 18.20! XING is down 31% from there, and now you're going to reiterate your Strong Buy?"

Dutton reiterated the Strong Buy again on August 21, with XING closing at 9.74, down 46.5% from their February 14 reiteration, and down 27.6% from their June 4 reiteration. Now, what are investors who bought those two Strong Buy reiterations saying?

$##$%$%

And, when XING finally hit bottom at 7.65 on September 14, 2007

The February 14 investors are down 58%

The June 4 investors are down 38.5%

The August 21 investors are down 21.5%

How credible were Dutton's Strong Buy reiterations with any of those investors? XING has recovered, as we know, but we certainly can't give attribution for that to Dutton. XING stumbled badly after their last Strong Buy reiteration, and didn't begin to rally until 3 weeks after their call.

The ONLY thing about the fundamentals that is important to me, is the market's RESPONSE to them. Earnings. Upgrades and Downgrades. News items.

Will Dutton's "Speculative" Strong Buy reiteration of October 29 at least get XING rallying back to 11.50 resistance, which is the bottom of the 11.50-11.97 "neutral zone?" Will the reiteration help XING get back inside that neutral zone? Will it help XING get back above 12.00?

That's what I'll be watching for . The market's RESPONSE to the reiteration.

And, by the way, with XING at something like a P/E of 5 basis 2008 earnings, my read on the "Speculative" insertion to the Strong Buy reiteration is that there is "risk/speculation" that XING could be a "value trap" at this ridiculously low P/E, meaning that if XING management can't get their act together and the stock tanks as a result, investors are "trapped" because they bought the stock, thinking that it was a "value" play.

XING already has been a "value trap" for investors who bought it at much higher prices, in the 10-month Head & Shoulders Top.