As soon as I saw the PR come out about ConvergenceNow Plus that highlighted Verizon and Vodafone before the earnings PR, I knew that we were about to get screwed. I immediately thought bad things, scanned the earnings release that came out minutes later looking for AT&T and guidance and didn't see anything. Earnings were as I expected, so I didn't think much of it, until I just checked it tonight.
Tomorrow, SNCR will begin trading its first day as a value stock, by less than 4x revs.
I am a bit conflicted. I don't think the guidance and earnings were that bad compared to say, what you saw out of a MAKO tonight. I am still not interested in immediately averaging down here - couldn't anyway. Whenever I see a company that should be thriving smack dab in the middle of a secular growth trend not able to create value for shareholders, you can't really put more money into it when you're already there without a reevaluation. Still, I think the story plays out well for global growth in this name.
Since my philosophy precludes me from averaging down on losers that have lost more than 10% post-earnings, my feelings are that I wish I had only discovered this company tonight instead of several quarters ago. I'm usually pretty good, but this one got me. Good luck to all from here.