This talk of sub $10 is hilarious! This company has hardly any debt, just signed their biggest deal ever to give them some real credibility, and to top it all off, reported a great quarter with huge growth. The 20% haircut they got was to be expected because of the possibility of stock sales by employees but I don't think they will sell. ATHN is going nowhere but up from here.
In 1987 the market gapped down on the open by 11%. You think there might be a few blown stops when that happens?
And then....after 1987, they put in the "collars" so that people couldn't use program trading wouldn't push the market down in difficult times.
Then 1998 came along......and it STILL happened. The NASDAQ sold off by more than 30%. And now.....in their ultimate wisdom, the "uptick rule" which SLOWED DOWN short selling during distressed markets (and I believe was a GOOD rule) was repealed this past July. So now people can short EVEN ON A DOWN TICK. You're going to see a LOT of stops get blown.
What do you think is going to happen if the market gaps DOWN by 10% or more on the open this coming Monday?
We'll see what happens over the coming few weeks.........
Is that you "weatheronwallstreet"? Have not seen you for a while and missed you. If it is you....do not argue with this guy....he knows what he is saying. What interest do you have in HCIT? Or is it just the valuation that brings you to watch ATHN? Last I saw you was on PMCS. Got out of that one long time ago also.
We'll see what the tape says over the next two weeks. When the VIX spikes to 40 and people are throwing shares out the window indiscriminently......we'll see wht the share price is.
A PE of more than 60 times current years earnings (and NONGAAP earnings at that) is NOT sustainable in the short term.
The company priced their shares at $18 (even though the first trade was at $26). The $18 target will be the first target that gets taken out. They were fortunate to go public right in the middle of the last bullish leg up in the market.
See you at $10......At $10, its STILL a PE of 24 times current year NON GAAP EARNINGS.
I beg to differ. Coverage has been initiated to HOLD.
This is only going down once employees sell off. This company has a high turnover rate, majority of "employees" that hold stock are now long gone (excluding mgmnt) These ex athenistas are primed and ready to unload come the first days of Spring! Buckle Up, it's going to be a bumpy ride!