I have been highly skeptical, but downgrading this to sell at this point officially makes it a buy. Late upgrades are a reason to sell as institutional investors get out at the expense of retail. I late DOWNGRADE is meant to shake out easy shares for those who want to go long.
I am upgrading my sentiment from hold to buy and will look to start nibbling.
Read the article... Disregarding the introduction, the reasons listed are almost entirely in favor of long positions. Shorts feeling the drop in momentum and trying to scare the last nervous investors to bail. Give it up I say, supply is drying out.
If you read the article it only states the reasons as being the poor cash management (which arguably does not look to good, but nowhere near catastrophic) and the other reason being the historic performance of the stock itself!! In my opinion they list 2 negatives and several positives and their computer spits out a sell suggestion, which i find rather useless. Looking at actual analyst coverages (10/2/0) (Buy/Hold/Sell) tells me more..
In my opinion its a matter of short propaganda trying to prevent a too optimistic view following a recordbreaking black friday (and cybermonday). I think shorters are running out of steam and momentum
NO DOWNGRADE. There is no change to the ratings of the regular analysts covering this stock.
"TheStreet" should be investigated for using such alarmist language. No doubt they are in collusion with big interests. Note their disclaimer:
"TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model."
Their model weighs heavily on stock performance and the fundamental metrics are a non-issue for SKUL; a red herring and there is nothing new.