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Zhone Technologies Inc. Message Board

  • superbowl6wins superbowl6wins Jan 22, 2014 3:35 AM Flag

    Buy on the Rumors, Sell on the News ?

    Anytime I see a stock run up just before earnings I always sell half. If the rev.,earnings, and guidance fall short the stock will tank. If all 3 meet estimates the stock will tank. If they "just" beat all 3 the stock will tank. Only if they hit a real HOMERUN will the PPS go up maybe, if the funds don't tank the PPS while they buy "CHEAP" shares, cover shorts and get what they need to get done before they let the stock run up.
    Great stock , I will be buying at the right price.

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    • superbowl6wins,

      Based on the scenarios you have outlined, your strategy makes sense. I wish you good luck. If it does not help you, it will someone else.

      I am hoping you are distinguishing between the guidance provided by the company and analyst estimates. The company has guided to Q/Q revenue increase in mid single digits, profitable quarter, and record profit for the year.

      At the moment only one analyst - Craig-Hallum - covers the company. They have estimated revenue of $32.5M and Non-GAAP earnings of $0.05.

      Finally, I have a question for you. Why do you think this is a great stock?

      Sentiment: Strong Buy

      • 1 Reply to alakamuna
      • Finally, I have a question for you. Why do you think this is a great stock?

        !. Stock has gone from 0.56 to 6.62 , that's a 13 bagger or 980% increase from the low.

        2. ZHNE has a great 6 month chart with a long "steady" uptrend that I look for in a stock usually over a year.

        3. PE is 25 but a better indicator that includes GROWTH is the PEG and at 1.74 that's great.

        4. OK debt with more "cash on hand".

        5. Book value 1.12 which reflects a good asset to libilities ratio.

        6. Last, ZACKS agrees with me #1 strong buy with an Outperfrom for the long term.

        There are many other things I look at but those are the big ones that have always worked for me in the past.
        I pay for the ZACKS service, best money I ever invested, helps me save time. Sometimes we don't agree but I feel better when we do, they are not always right either but they give me more tools in the toolbox.

    • The intraday high on nov 22 was 6.40. So the stock has gone sideways as measured from that gap up, of 2 months ago.
      So I would say there has not been a run up, just sideways motion since the high after the jitc certification
      and the subsequent Craig-Hallum upgrade.
      When you talk about meeting and beating on a stock that is not covered by analysts and where the ceo didn't make any claims to speak off(other than beating the yoy q), You better lay out what numbers you are talking about beating.

1.38+0.10(+7.81%)Feb 9 4:00 PMEST