Normally.. companies report earnings followed then by either an upgrade or downgrade.. Like a report card in school. Wall Street's dirty litle secret is that these upgrades or downgrades are only paper work once they are released. The analyst's/firms clients are given the buy or sell signal way before the report is released. The reports are for the "stupid" retail investor. There are very few surprises on the street after the fact. Unless a company doesn't communicate with the analyst community and wants to keep a "chinesse wall" ..the way wall street firms are surpposed to keep between the analysts/investment banking/trading deparment. SEC regulations require and regulate this.
So now we 2 analysts that jumped the ship.
This is very interesting to me considering the company is in the quiet period right now. So they would not discuss anything with anyone anyway over the last month.
Analysts have been wrong MORE TIMES THEN NOT. MOST OF THEM HAVE A VERY LOW SUCCESS RATE! BUT THEY HAVE MORE POWER ON SMALL CAP STOCKS THEN ON LARGE CAP COMPANIES.
I will still go back with the SMART MONEY INVESTORS WHO HAVE A LONG HISTORY AND TRACK RECORD OF BUYING SMALL CAP COMPANIES WITH EXPLOSIVE GROWTH!!!
The good news that ALL THE BAD NEWS IS PRICED IN. SO EARNINGS CAN ONLY be a postive good or bad.
NO position in HEK right now but will be seeking an entry point.
Back in August, company shares plummeted 22% when CEO Richard Heckmann refused to provide earnings forecasts to Wall Street.But on Tuesday afternoon, shares were up 42.19% to $3.83 after the company announced it was acquiring Power Fuels Inc., a North Dakota-based wastewater treatment company with involvement in the Bakken.
Richard Heckmann, who had received his fair share of criticism from frustrated analysts, believes he will be vindicated with this announcement.From the Wall Street Journal:“I do think there will be some people with egg on their face because they've been screaming at me about what an idiot I am,” Mr. Heckmann said in an interview.Heckmann originally wanted to announce the merger before the earnings release, but it took longer than estimated to work out the deal. He did not want to mislead investors with an earnings release that didn't include the deal.
purchased a partial postion towwards the end of the day. I like how the stock is holding at these levels with the 2 downgrades built into the stock price. If shorts can't press this stock any lower from here with all the bad news out of the way then they will no choice but to cover.
keep in mind that the jeffries clients whoever they are either sold before the downgrade or are holding on to the stock. the 2 downgrades are built into the HEK stock price right now. the 60 percent institutional owners are certainly not bailing. the wild card for the short sellers which they are not counting on is that these preemptive analysts are WRONG. THE MAIN PLAYER IS CS FIRST BOSTON and they haven't blinked yet. Hmmm maybe because they are the most reputable firm on wall street and heckmann. This wouldn't be the first time that analysts are wrong. They are taking a very big risk on their reputation. Well not really. Both firms are really footnotes. Either way the bad news is built in already.
Thank you. Something just doesn't sit right with me. We have smart money in HEK already and buying more aggressively.
I really disagree with the analyst community. They obviosuly will never get the stock called correctly.
THE PROBLEM IS THAT THE CAN HURT US ALL AND THEY DID MOST RECENTLY!!!
It's the SMART MONEY (60%) VS THE ANALYSYTS/SHORT SELLERS (50%)
Yes way out the PRKR trade. Possilby some light scalping today. Would like to a big gap down.