I agree.i own 2k shares I think we should have a pop since forbes expecting less losses. If drop today to 5.10 I will double.price per share is already reflecting since the last report with 25 % drop.and its been steady betwen 5.06 to 5 30 average.so 2 things im expecting tomorrow and today.will go down in the morning to shake up theshares and get the weak out of wway.the will beging to clime to new high.will be very volatile with this coment from forbes yesterday.since 5 cent less loss its aprox 10% more in value.
New ceo, new products, new promotion and their concentrating in high margin product to increase bottom line.best of all $0 debts and probably they did some buy back shares with the open creditline.
revenue is the key driver and will determine if they BEAT or not... their overheard is pretty much fixed so any revenue upside and or favorable mix and it will flow to the bottom line. Conversely, if they have to move out OLD product and provide huge discounts to do so ( which is why the guidance was so low in the first place ) their GM will come under pressure and it might be hard to beat...
Unfortunately just beating a soft quarter does not mean the PPS will rebound.. they need to at least meet and or BEAT their estimates and then at least provide guidance that is in line or slightly better than their previous conservative stance... not sure if the new guy will be READY yet to signal an improvement in the business or not?... he has to be careful to not destroy his credibility right out of the gate , he might wait a quarter to make sure the business is improving .. what is the downside in being cautious, expectations are already low so why inflate them until you are 100% sure? i have my order in for $5.05 and will be starting a position under $5.10 and will hold thru earnings if i can get it filled today or tomorrow.