FDRY guides much lower than ETS and gets a few downgrades from big guys like ML and BOA but goes down less than 5%. ETS is down more than 42% since announcing lower guidance. What is going on here? Either ETS has to rise or FDRY has to come down significantly or both. Obviously, institutions are accumulating ETS.
And FDRY gets downgraded by every small and big brokerage house (BOA, ML, Friedman, Pac growth, Ferris Baker...). That many downgrades in one day may be a record but it is telling that FDRY is getting a ride from its previous quarters for Q1 profit but it will fall from the cliff for future quarters. It is kind of late for them to realize the seriousness of the problem they have on hands. At least ETS figure out its problems early and working on them. At current PPS, ETS shareholders have nothing else to lose and they should feel much more secure than FDRY shareholders. ETS is underdog with better products and not that much dependancy on a bone from government like FDRY.
>>What is going on here? Either ETS has to rise or FDRY has to come down significantly or both. Obviously, institutions are accumulating ETS.<<<
What is going on????
1 - Despite the lower revenues fdry will still make a profit this qtr, ets burned $30mil.
2 - fdry has made money every year since 1998, ets has lost money every year since then except 1.
3 - fdry has more revenues now than they ever have had, ets is about 25% of where their revenues were at the top.
4 - ets and fdry are at about the same current revenue levels and fdry has about 650 productive, profit generating employees, but ets has a 1000 non-productive, money burning, corporate welfare recipients.
5 - Last year fdry had free cash flow of +$73mil, ets had -$71mil!!!!!!!!!!!
First, FDRY is trading more than 11 time of ETS. Second, with your logic, FDRY has hit its limits and there in no room for improvement by cutting any work force but ETS has plenty of room to be profitable by reducing the work force. Which one do you go for to gain more? ETS can be double in just few weeks but FDRY may reduce to half by next few months.