A company grows revenues 37% YOY, reports in line earnings at .64, and the stock loses 40% of its value?
This market has turned into nothing more than a gambling ring. I have been investing for a long time, over 20 yrs, and in the past 5-10 years the market overall, not just one or two particular stocks, has become insane. You have better chances at the casino.
I'll admit I was disappointed with the earnings as I thought they would handily beat estimates, but estimates are just that, ESTIMATES! The company still showed growth though. So exactly how does the stock lose 40% in a matter of minutes on such low volume in AH trading? Makes absolutely no sense. It doesn't matter who is short or who is long. Losses in share price like this, and $100 gaps up like GOOG or PCLN make no sense.
It's all a gambling ring now, and today I take all my money out of the casino never to return. Until the powers that be fix the broken system, I would encourage everyone else to do the same before the crooks take all your money.
The report by GMCR was not that terrible, and does not warrant a 40% drop in price. It should drop most certainly as they cut guidance, but the guidance was only cut 10 cents and that is still growth over the YOY basis. It still doesn't warrant a 40% drop in value of the stock, maybe 2-3% at the most. I only had a few hundred shares bought at $44.75 and sold half before close yesterday as protection, so I am not out that much, but I know there are people getting hurt by these scams on Wall Street everyday.
Good bye to the scam! This market is not investment grade. None of it is. The RISK of losing everything is way too high for the reward these days. I will let the scam artists and crooks play amongst themselves from now on. After 20 years, I will never put another dollar in the stock market.
High flyers with lots of issues (patent, accounting) and now growth are usually destined to belly flop. Listen to management - obviously they did a lot of 'trying to understand' - you expect investors to feel that way too? Pepsi, Coke, PG and J&J are blue chip dividend paying investments - but this high flyer is a gambler's stock. Stocks vary widely in terms of risk parameters.