Just looks like consolidation after the last earnings bump. I think its very healthy, buy more shares before the next earnings announcement. The good story continues.
Here's what I found out. The gross margins overall have been around 20.5%, however they've increased overall slightly over the last 4 qtrs to a little over 21%. Now there is slight seasonality(based on 2014 quarters sequentially), with the Dec qtr being about .05% less then the Sept qtr, the Mar qtr being about 2.6% less in revenues than the Dec qtr(at least last year), and the June being about what the previouis Sept qtr was. Then the sequential Sept qtr is much greater then the June qtr- by 11% on revenues in 2014 vs June qtr 2014. The bottom line is, using a 21% margin(conservative as it's .05% less than the Sept qtr) for the Dec qtr, it should come in at $1.52+, then the Mar qtr should come in at $1.40+, then the June qtr at $1.62+, and the Sept qtr over $2, and the Dec qtr around $2.
All totaled, if 2015 plays out with the same trends as 2014, PLUS would make over $7 in EPS for the calender year. Tack on a historic 13-14 PE going forward, and it takes the stock to $95, and this is conservative, as margins might very well average more than 21%. Personally I believe the stock is easily worth $80+ right now, and if they continue to prove themselves, then $100+ later in the year.
When PLUS closed above $75 on 12/31, Sidoti downgraded their opinion on the next market day (1/2/15) to Neutral from Buy but left their $80 price target unchanged.
The huge drop in stock price was due to a firm's downgrade.
I like this firm but don't like the manner in how management reports its earnings and revenues. They have a policy of not giving any forward guidance, not sure why. Many other successful tech firms give forward guidance. And they don't break out recurring(service) revenue from total revenue.
Now they''re going at the pace of $6+ for 2015. In addition, the stock has averaged $58 or so for the last year and a half, while EPS has been around $1/qtr. They just posted $1.63 for the Sept qtr vs $1.06 for the year ago qtr. Seems like 60% year over year growth isn't worth anything ? I don't get this recent selloff.
Technically ? The company just posted the best qtr in history. The Sept qtr 2014 was $1.63 & beat the year ago Sept qtr by about 60%. The company said that they expect the growth to continue. Technically has no meaning vs fundamentals, and no one should buy or sell a stock based on it unless they want to lose their money. What has meaning is, the company is in one of the hottest sectors of technology right now, margins are sustaining or increasing, revenues are expected to continue to grow strongly in 2015, and earnings have gone through the roof, while the PE is now only 11 going forward fully taxed and diluted. Tack on the same 15 PE going forward they've been trading at for the last year or more, and we get to a $90-$100 stock. If you want to sell, be my guest- I'll take your shares should it keep falling on no news.
looks like technically this is getting set up for a move to touch 56. This started moving first; similar setup in MNST ... its going down to 90 first. (even though fundamentally the two have nothing in common).
smig- Check out SEC docs on Form 4s in late 2013 & early 2014. The same exact insider selling & by the same guys. However the stock is up 30% since then despite all the selling. Mind you, the company has been several hundred thousand shares back over the last year or two as well. Mainly though it's about earnings. Sept qtr earnings were $1.63 vs $1.06 in the year ago qtr. The Conference Call & earnings report has the company saying busines is strong, and expected to stay that way. I see EPS of $6-$6.50 in 2015, and a PE of 15 which has been it's historic PE would give the stock a $90-$95 target.
Bottom line is, no one knows why the stock went up $3 on Wednesday, or down $7 today, both on huge volume, but to assume something has to be wrong is a foolish IMO. I doubled down on the stock today at $68.50-$70.
Sure about that? Down approx. 10% with accompanying huge volume (more than triple the norm). "investors"? Maybe insiders instead? This is not something that smart people do *just* because it's the first day of the year to defer gains. So much more to it than that. What's their holding period been (long term vs. short term)? And why would they want to sell so badly? So they can invest in something they think is better?