I am slightly confused by the stock performance over the last couple months. There have been several analyst downgrades but the stock continues to rise and push higher. I'm assuming the stock has been rising due to both the fiscal cliff being resolved and the dividend increase announced in December. After reading the dividend hike news, it looks like they do this every year and is normal so I am not concerned about it.
After reviewing the fundamentals and the current valuation, I am quite surprised this trades at $35.73. The prior quarter earnings call transcript says it all...revenues are down, margins are dropping, and earnings are decreasing. If you take that into consideration with analyst downgrades, this thing *should* see a drop on Wednesday, January 15th.
For all longs - what am I missing here? I would think this stock is a SELL and a short. This stock is somehow at a 52 week high and management is going to dish out bad news. That's a receipe for disaster.
As always, I appreciate comments from bulls and bears. GL to you all.
likely reason up is because of all the day-trading action that uses Semiconductor and Nasdaq leveraged ETFs, so when hedge funds buy SOXS & SOXL for example and then there's even more of these products in so many other countries