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I don't follow RAX, so don't have any words of wisdom on the company.  But I can kibitz a bit on what you probably already know.

The key question you need to answer for yourself is whether or not the poor earnings is a short term glitch or something that's going to dog the company for a long time. 

If it's just a blip, a big selloff over a one penny miss could be a good opportunity to pick up shares on sale.

If it's more of a structural, long term issue it's more likely a sign to sell and look for greener pastures.

Read the earnings release, read the transcript or watch the video of the earnings call (if there was one), look for whatever analyst coverage you can find on the earnings.  Then make the best judgement you can on whether the miss was caused by a long-term problem or just some short-term issue.

And, you can always straddle the fence - sell some and hold some.  That way, no matter what happens, you only screwed up part-way.


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