AFAM has made a huge run in front of Q3 results to be released Wednesday. Short term, it could be a case of "sell the good news" thought in the longer term company outlook is very strong. I think the short term may be affected by how analysts respond to the news and the big run up in the stock. Will they boost targets and retain ratings, lower ratings to reflect targets quickly being met, or do nothing?
<<<Will [analysts] boost targets and retain ratings, lower ratings to reflect targets quickly being met, or do nothing?>>>
Wow, what a quarter - and the exciting part is that there's more to come!
There's a very good chance that analysts will be raising their targets after that blowout quarter. I think the only things holding the stock back are the weak broad market today as well as the securities shelf filing. The silver lining to the potential offering is that clearly AFAM knows there are more attractive acquisition opportunities out there so they may need more financing. And we all know how the stock has performed since the last offering! If future acquisitions are as attractive as the many past ones, this points to additional strong growth ahead. While there will be short term volatiluty, the stock should rise further as its valuation relative to its growth is still very reasonable.