It is hard to say with this stock. I thought it would drop and have a chance to go to $4, but not almost in one day. It is a good buy at $4 a share. It will be interesting to see what happens with the analysts this week. Is one bold enough to downgrade since it has already taken the beating or will one come out and say nothing has changed and the earnings miss was to pay for the lawsuit and they have $1.3m coming in every quarter for the next 11 plus some action at IBM and Fidelity. If the stock goes to around $4 or lower, then I would expect Actuate to buy back more shares and make an announcement.
MSTR....sales and marketing expenses were up 18% sequentially, a factor which “restrained the EPS beat.”
Whereas ACTU BIRT business with minimal sales and marketing involvement this quarter...That is Big , going forward...IMHO
By Eric Savitz MicroStrategy (MSTR) shares are trading lower despite better-than-expected Q2 results.
The business intelligence software provider posted revenue of $107.5 million and profits of 97 cents a share, ahead of the Street at $100.6 million and 86 cents.
But Roth Capital analyst Nathan Schneiderman notes this morning that profits in the quarter were lifted 13 cents by capitalizing $2.2 million of R&D, while other income was 9 cents a share higher than he had expected, and a lower tax rate lifted results by 6 cents.
He also notes that sales and marketing expenses were up 18% sequentially, a factor which “restrained the EPS beat.”
Schneiderman cuts his 2010 EPS forecast to $3.60 from $3.75; for 2011, he goes to $4.65, from $5.10, “based on higher estimates for revenue that are more than offset by higher expenses.”