Why has this stock been stuck in such a narrow range for the past few months? I'm not being a basher or being sarcastic, I'm asking because I'm thinking about buying some shares. I mean, it's trading at book value, as of today ... $2.38/share. I mean, it's worth $1.69 just based on the amount of cash this company has. I'm aware of the management problems and the recent separation from FB. I'm also aware of the 239 forward P/E. But, all-in-all, this would seem like a very oversold stock that would be good for a double or triple on any decent news. Can anyone give me any real insight into why it's been trading on such high volume in such a narrow range (other than it's being day/swing traded) for so long, and why it lost half its value a few months ago? Thanks.
I think the company is mismanaged operationally not strategically though. Strategically it's doing the right things. But the company is spending too much money for all of it. Just look at R&D last quarter. $155 million is misleading because included in that figure is stock based compensation and headcount related expenses of $45 million. Not sure I understand why these charges are here instead of cost of revenue.
It looks like this will be trading range-bound for a while unless there is significant news or Pincus presents a "grand plan" which investors will like. In the meantime, this is purely a trading vehicle only as shown by the high volume.
Opportunity only knocks once. I beleive the MM's are holding this down till banks get their allotment however much that is at these levels. But the catylist will be like a spring board and when this takes off you will not be able to get in at these levels again. Not even thebanks. LOL JMHO
I read all the executive departures differently than it's usually depicted. 99% of the time it is cast as "leaving a sinking ship". I think it might be more that they were more or less asked to leave to reduce salary costs and their value may not have been worth what they were being paid. Just a hunch though.
This is the perfect summary of the issue facing the company. Pincus is a total #$%$ bag as a CEO and the remainder of the management team are minions to him. It really is like watching children play with other people's money. They seem to be totally clueless. Until the management / ownership structure is cleaned up, this thing will languish regardless of the potential for any news or results.