You are focussing on the wrong thing, how many times have we seen spectacular earnings released by a company........and the stock takes a dive. Or......A company releases terrible earnings and the stock takes off ?
Because the day the earnings are released those are now history, the main attraction is.......what is said in the Conference Call (C.C.) about going forward. What's ahead is what is important to the stock price......not what's in the rear view mirror.
Does anybody here in light of recent events think that the C.C. is going to be negative ?
Your statement about the CC is correct. But there is nothing for certain for this company. There could be positive forecasting, then stock resumes rising. but if there is a banal CC, just like most of them were in the past, the share would drift slowly, like it did before. The positive trend of earning (or less negative) is by cutting R&D cost and diluting shares. There was nothing substantial in contributing to earnings. Do they have a new product, no. do they plan to release new instrument, no, only a long term plan by the Roche deal. This is already price in. So to me the risk/reward is high. and I am happy to miss the boat if there is positive surprise.
They do have a new product. They just release the new iteration of their polymerase which leads to mean read lengths of 8,500 base pairs, with reads as long as 30,000 base pairs. This is a big deal to those of us that use their platform. They also signed a deal with Roche, which you might have heard about.
These are valid points and will limit the upside. And that debt facility from Q1 is ugly ugly. However, given the positive momentum and increased volume I think any good news (increasing backlog for instance) will result in a moderate surge. It's a beautiful chart....
nimuma......One more comment, the "Roche deal" is not fully priced in the stock yet.
We have yet another leg up to go. In the initial move on the news the stock only reached the halfway pont before it pauses and consolidates before finishing the move, that is what is currently going on, the consolidation phase of the move.
Further news would help, BUT, it can finish the move on no further news at all.
That is the beauty of flag chart patterns, which PACB currently is.