Horney hairy has it nailed, IMHO. 2 actions going on. 1. Traders who have 15mm or so to play with and an occasional big boy nuggie for effect. 2. Big boys have 95% watching the build to a 5 bn rev company at 25% per year. 2 1/2 years away at most. Mostly acts like a private company. IMHO 5 mm miss on 25% growth, now under 10 pe, that's why the 28-30 target by pros. Even the 5mm and a bit more was moved to next qtr. If anything Ricci wants to keep it low to peg his buy in prices.
By the way, Yahoo is now showing the trailing PE as around 30 -- using the GAAP earnings. Future PE is listed as 9 ..... which is what one would expect absent significant acquisitions (i.e. GAAP approximating non-GAAP) with the forecast 13% revenue growth and slightly shrinking margins (as indicated in the conference call).
Possibly Rep -- but then Nuance has been built by acquisitions. I have been around since the $5 scan soft days. The earnings pattern that just took place has been with us on a regular basis. I feel it is a product of the method that Nuance has been built. In todays volatile market the blip is a little more pronounced. At what point the acquisition stops and organic growth starts will largely be determined by when he believes he has sufficient control of the market. I do not pretend to know when enough is enough but I am glad he did not stop when it was $8 a share.
Best wishes to all.