SWIR should still be thought of as a development stage company even though they've been around for a while. Generally revenue growth is the focus for such companies, not earnings. They beat on revenues. So this reaction is a little puzzling.
Puzzling?? With Wall Street it's all about momentum and acceleration. The business is doing fine, the employees show up for work on Monday just like any other day. They keep making calls and setting up design projects for potential customers. The price and Wall Street have nothing to do with the business. If it goes well long term the price will reflect that. If not it will reflect that. These wackoids on Wall Street have little to do with what is going on in Richmond BC.
Its always the same. The sheeples follow, lose consistently and wonder why. Here this is a long term hold. Its that simple. You have growth, great balance sheet, no financial problems at all, and huge market just starting to spread. Its what growth stocks are ALL about. If you play the volatility, its a #$%$ shoot, with little to do with value, future or much of anything for that matter. Today was not complicated at all. You had a bunch of short term folks hoping for a gap up on some news or results. Results are good, but they sold a bit. BFD. This stock can gyrate all over the place, but the cash will accrue, the sales will increase, market grows and they continue to acquire while market share high. It all means big profits moving forward and huge up in value of company for years to come.IMO Buy and accumulate and hold. Its that simple here.IMO
And we should add. These same short term guys were the ones that drove the price of SWIR too high. From 10 to 26. It should have been in the mid teens by now, not twenty something. These guys are never around long enough to get the real benefit out of anything they might own. I'm an old guy, 74 years old and I was a research analyst for over thirty years. I remember debating if AAPL was going to make it when the stock was below $5 and wondering if Phil Knight had blown it at NIKE when the stock was down to 50 cents adjusting for splits. Not a single Wall Street type had a buy on either of those companies then. In fact, they had nothing but sells. Today they love them at $600 and $72. Nobody makes any real money buying yesterday's news. But they keep trying and gathering a little investment banking business along the way for their firm.
The Chicken Little day traders' panties are all bunched up. As a long term investor, I continue to have reasonable faith in SWIR and will take advantage of this silly panic drop to buy more shares and thank the weak kneed for this unexpected opportunity.
This x 10.
I'm laughing as I'm buying more as went below 19.50. Will it drop some more. Maybe. Do I care, not really. These types of drops just shake loose people who are looking for a fast buck. To each their own.
Those people are the same who think the idea of Fedex would be a failure and that nobody would own a personal computer.
We are one big announcement away from a big spike and I'm not a fortune teller so I'll buy more now.