You have stocks/companies like HRB posting horrible earnings and skyrocketing due to future results will make up for it, then come to find out future earnings are only getting worse and the stock keeps skyrocketing. This stock literally points to the fact this general market has become over-hyped and has gotten way ahead of itself to say the very least. If this does not double top I will be surprised, but still will add to my PUTS.
The past 7 earnings reports HRB has missed 4 times, beat once, and met expectations twice. The last miss was by far the worst. Meanwhile next earnings WERE expected to be 2.65 on the Q4 report. This would have been a huge 30% increase year/year (previous 4th Q only 2.04/share) but with recent news of lowered total returns, an increase in lower margin e-files, as well as a $25 payment to over 600,000 people and potential litigation, so a miss is a guarantee and possibly a reduced earnings/share year/over for a miss of over 30%. These higher prices are a gift for bears IMO, just gives me more time to accumulate PUTS.
Agree totally - well supported details for a short. I'm underwater and can't can't can't understand the market irrational irrational response today! Recently read that solvency is no test for an irrational market so I;m holding pat to see what the next few days bring - if not today when will this trend down?