Did I miss something? Unless I'm wrong ZAGG beat on both the top and bottom lines? We get a beat on both EPS and revenues and the stock drops? Guidance for 2013 is above analyst estimates, and the stock drops? Better than expected guidance, which by the way doesn't included many of the new product releases that will happen this year, and the stock drops. Based solely on the fundamentals of this company the pps should be much higher. If the short interest in this stock was not so high I wonder what effect this latest earnings release would be having? I wonder what will happen when the shorts cover their positions and return their borrowed shares, will they start the process all over. I just don't get why anyone would want to short this stock now after the latest earnings release?
You didn't miss anything. A lot of us made the correct reads and at the start of the day were rewarded with +10%, but the price kept lowering as time went on, likely due to shorts. It's very unfortunate.
I know I'm a bit upset because I was deciding on whether I wanted more of my money in ZAGG or PANL; I chose ZAGG and got screwed. PANL is up 15% today and is climbing - I don't see THAT stock getting shorted to hell but for some reason ZAGG is. Lucky for me I still had some money in PANL, but if I had as much as I do in ZAGG I'd be a lot more black than red.
There are big shorts controlling the share price. They smashed down the post-earnings pop just like they always do. I don't know what their plan is. Are they just going to keep a lid on the share price and hope for the company to go down the tubes some day? What would happen if Logitech or someone bought out ZAGG tomorrow for $14/share? Doesn't that equal complete disaster for the shorts? If they are shorting at these levels, their average short price can't be too high and a $14 buyout would equal large losses for them.
I never dreamed the stock price would be back in the lower $7's after such a solid earnings report. But here we are. Is managements answer to this problem the share buyback program? Everyone knows the situation, it's no longer any secret whats going on here. I believe it's managements job to protect it's shareholders. I know they are doing the right thing on the business side, growing earnings, but they are not growing shareholder value. I hope the buyback helps somewhat. What else can they do? How else can they fight this bs?