The guidance was poor. Aren't the new lines supposed to gussy up results? Blaming the weather is just not good enough. They are still going to lose a lot of money this year. Even if they, say, reduce the loss by another 1/3 this year, that's not good enough. Besides, I'm not convinced they will. The CEO seems to be going out of his way to sound as cautious, and uninspired, as possible.
We may not go below $2, but then again, it could retrace all the way to $1.60 or so.
It seems you guys are basing your predictions on technicals. If the company only has cash down only $1.6 million on the entire year, do you actually expect this company to be finished any time soon? That leaves technicals, but the technical price targets in my brokerage account for this stock over the past several years have proven consistently wrong (whether going up or down), which is why I'm glad I don't base decisions on technicals.
The weather is a very real driver of results for these guys. If investors buy/sell purely based on the stated guidance/range, this will continue to go down and your short will pay off handsomely. If investors buy/sell based on a more educated view of the information the company actually shared, then it won't go down, and will actually go up heading into the next earnings release. The thing is, I'm not sure there are a whole lot of clueless investors left in PSUN.
The low volume today compared to the day after their other recent earnings reports tells me not a lot of weak longs or new shorts. Which makes sense to me given the positive comps this quarter in areas not affected by winter stores. Based on images of line-ups in NY area malls, and styles selling out online, I'm guessing K&K contributed to the positive comps, and if true, those who have been paying attention know the new summer K&K line will launch next week.