Short Selling is SOP after June CALL, same traders will run HTCH back up
Having followed HTCH and the hard drive stocks for 20+ years, a short scam after June earnings is SOP for the hedge fund traders and shill Analysts. FYI, they also hammered WDC this week after it posted upside by 15 cents, gained share, and guided higher for the September quarter. WDC now grossly "over-priced" trading at a P/E14 under 7!!!!!!?????? LOL!
While the operational issues were a surprise, HTCH indicated during the March call that the inventory build would hurt margins this quarter. Both issues are BEHIND them. They need to get to 130 M suspension ships for profits and they indicated next quarter shipments up to 110 M, with most expecting growth in the drive TAM during the December quarter.
SO WHY WOULD YOU SELL BASED ON THE JUNE REPORT?
THINK ABOUT IT!
So IMHO, it's just a trading game being played once again.
The 2 important things to focus on are:
1. History has shown the same traders who sell the drive stocks down after the June calls, run them up in the Fall and Winter months.
2. The factors that are expected to drive suspensions shipments up to profitable levels in 2014 are all still in tact.