Beware of a Downside Price Pattern

Bad things happen to stocks that are on the price downside. Lexmark International (LXK),a supplier of computer printers and printer supplies, on October 4, 2005 warned that its third quarter earnings would be half of analysts' expectations. And the stock plunged $17.44 (29 percent) to close at $43.50. The sharp decline followed a 15-month price downside that started on July 1, 2004.