Red Hat Down on Disappointing Earnings

Red Hat (RHAT), a software provider of the Linux operating system, sank on worse than expected second quarter earnings. On September 27, 2006 the stock gapped down on open $5.45 and closed down 23.2 percent. Investors bailed out in droves as trading volume for the day was 11 times the daily average.

Avoid RHAT because more price downside is probably on the way.

Gap Down in Price Usually Caused by Bad News

Posted September 29, 2006.