Why would a company that has many many connections than anyone here, and very deep pockets for doing extensive research buy soooo many shares of Zagg???
Clearly they've lost their minds buying over 10% of Zagg!!!
Or they know something we don't. Only time will tell...
Will the gap fill?
Is the stock consolidating before the next run?
Will the shorts ever see a real squeeze?
Will their be another round of buying that drives this over $7
Is there a buyout in the works?
What's Logitech up to?
Why in the heck is BlackRock BUYING ?????????
ZAGG's fundamental value should be over $10. Even with a Bad Management Discount its still worth at least $7.50-$8. In an overbought market, hard to find deals like that.
It will appear as if it is consolidating, if my theory about this being the buyback is correct, its not - it was a spike caused by heavy one time buying.
The shorts will not get squeezed until a much higher price point. They have gotten fat off of ZAGG.
BR was buying at $4.97, they may well be taking profits in the $5.60+ range. Sorry, I know you guys like to think they are going for a three bagger or higher, but as a money manager, if they make 10-15% in
maybe blackrock isnt as good as some here think
story in todays journal that states the following
Only 18% of BlackRock’s actively managed equity assets under management have achieved Morningstar’s highest four- and five-star rankings over three years, compared with an average of 32.5% for all funds, according to Credit Suisse.
enter this into goog and then click on the link for the news story of the same title., this gets u behind the pay wall: BlackRock Equity Headache Persists
Morningstar's rankings are often outdated and misleading and reflect past performance rather than future performance. I would never use them as a guide and don't believe they reflect negatively on BlackRock. In fact, the reverse may be true.
Maybe they see something that SeekingAlpha doesn’t :)
The following is from a recent SeekingAlpha article:
“ZAGG has swung to the other side and is undervalued in my opinion. It has just come out of a bad earnings call and many analysts are forecasting better earnings per share for the next few quarters. Currently it trades at $5.39 and a P/E of 16 (TTM). The forward P/E is closer to 6, with a PEG ratio of 0.33. The short interest is high around 25%. I feel that a share price in the $7 range would be fair market value, resulting in approximately 30% return on investment. As ZAGG has benefited from its association with Apple in the past, new Apple product releases may be a catalyst for the ZAGG stock price.”
BlackRock is probably looking for far more than a 30% return from their investment so the SeekingAlpha writer is clearly missing something that BlackRock is focused on.
IMHO, BlackRock is focused on the HzO investment. That Zagg investment is worthless until HzO turns a profit yet around this time last year they announced that they were working with hundreds of potential customers (from equipment manufacturers to military) and explained a bit about the time it takes to integrate new technologies into existing products (I've seen it take anywhere from 12 to 24 months).
If all goes right then by this time next year there will be dozens (if not hundreds) of products using HzO’s waterblock technology and Zagg is one of the few public ways of investing in HzO.
IMHO, that is what BlackRock is really investing in… 30% plus the huge potential of HzO
BTW, the 30% that Alpha is looking for is the gap fill that most everyone is expecting.