This smells like VECO, CREE, STEC, VLTR. Big Guys smell a value trap and T/A traders smell a short killing. One more day of pain, then on Tuesday, if it doesn't start to recover, the computer program traders will destroy it just like they did for the past six months.
Better to have a P/E way over 100 but be perceived as 'growing' than to have a PEG <1 but be perceived as stagnant or having a book:bill <1.1.
Having been in the business, I think that the business itself has huge potential for the next 5+ years, as it has been around for at least 20 years and metered power control is only just catching on. But as soon as even one writer says the magic words "Peaked" or "Competitors are Gaining", it's a dead stock for months if not forever. The "Bigs" have no desire to risk a 50% drop 3 months from now when they can jump on CSTR, CRM or FFIV, regardless of 'valuation', because they are still 'growing'.
I hope I'm wrong.
I think the street is missing the boat on ITRI.Earnings forecast for next year are grossly underestimated by the analysts considering that this company has beat the street every quarter since they started to turn a profit.Hope I'm right but I am no expert.
Seems like a lot of company's stocks are getting crushed this reporting period after beating estimates.
Just imagine what would have happened if they only met estimates.
My take is that smart grid technology is a worldwide movement (like the smart phone) but we have only scratched the surface in terms of deployment.
It's the overhang. They're selling into earnings, taking advantage of the liquidity. It's a good thing. Although a bit disappointing.
I expect this to be a good support level. Analysts raised TGs.
Heavy volume tells me that someone bought before the earning and is very happy with the gains after hours. Short term gains are the name of the game these days. If we can close in positive note today, then it will move higher in th next day or two. If negative, we can expect some selling tomorrow as well...
I don't think this sector is looking very attractive to Wall Street. It could be a head fake to try and drive prices down before mass scale deployments start happening on a regular basis. You would think Itron would be up today.
<<I don't think this sector is looking very attractive to Wall Street. It could be a head fake to try and drive prices down before mass scale deployments start happening on a regular basis. You would think Itron would be up today.>>
I wondered the same thing concerning a possible head fake. I listened to the call and thought it was very favorable, especially ITRI's partnership with Cisco, who generally accompany ITRI on sales' calls. The partnership with Cisco adds credibility to the customers' expectations that the deployment and operation of the equipment will be first class. I also watched an interview with Cisco CEO John Chambers about a month ago on CNBC, and he was very bullish on this sector of Cisco's business.
On another note, however, there has been a general feeling that this business is dependent on government regulation, subsidies and stimulus, but now stimulus is running out and a Republican Congress won't be as interested in more regulation or subsidies. However, I believe ITRI's products have their own value proposition without more government regulation and subsidies, (which imo is the way it should be). JMO.
You missed what I missed. The chart is a mess, presumably for a reason that we don't know about.
The street has been cautious because of competition, yet ITRI continues to get contract wins and raise guidance.