1-When a stock is trading at 60 and they report only 3 cents per share in earnings for a quarter, it's going to drop 10%.
2-Never buy a stock after it's doubled because an analyst says it will double again.
3-Never buy a company that makes snowshoes in the winter time. You should wait until summer when it's trading off 50% from its high.
That is exactly what your thoughts are worth, 3 cents. Nobody is buying because of an analysts worthless comments, nor because a stock has doubled.
The EPS does not matter, cash generation does and ignoring this reality doesn't mean others should.
250M in cash generated this year. Company only being valued at 1.8B(1.85B-50M cash=1.8B)
For a company who is becoming much healthier and can easily borrow another 300M to buyback shares and pay it back within 18 months, this stock is a BARGAIN!
I bought the stock last summer in the low 30s and I'm currently short call options priced between 45-50 that will call all my shares away in May.
Personally I thought the stock was a value when I purchased it and when it continued to drop I continued to buy. You can't tell me that it's a better value at 54 than it was at 34 just 6-7 months ago.
I bought it because it was trading at 8-9 times earnings and had net working capital of about $10 per share.