RBC went from a "top pick" to an outperform with a P/T of 16 down from 20. Earnings beat this quarter and the guide was about 3% down from street forecast....They have in the last three months consistently beat their guidance, so more than likely it is conservative..
Looks like the classic Wall Street game in action to me. Pump it up with upgrades and slam the daylights out of it when they "miss" by a microscopic amount. Basically they hit estimates and this is just a game of chicken being played to see how low they can take it on the made-up "disaster". Looks like a pretty decent entry point to me. It's hard to ever catch an absolute bottom but buying after an artificially created dislocation like this usually ends up being a profitable trade with a bit of patience. I can't see how ANYTHING has changed from the outlook that generated all the buying interest earlier in the year. I bought in for the long term here this morning - serious upside and limited downside after this sort of drop with cash in the bank and debt-free. It will be played hard for a while but should rebound nicely later in the year, especially if the overall market stays strong.
This happens ALL THE TIME and creates a lot of buying opportunities. Happened with NetSuite (N) 3 years ago and the stock ran from $10 to $72 today. Buy this one and hold it.
Good comments. I listened to the conference call and came away fairly impressed, They have momentum, as you mentioned no debt and almost 2.00 per share in cash and equivalents.. I noted too the Forbes headline is a little misleading in the sense the "CEO Out", but in reality they just promoted the COO to CEO and the CEO became board chairman. In addition, the downgrade from RBC was from a top pick to a outperform. So that still indicates a buy...
sure they listening to you, every stock with worst earnings rebounded in this market at least 10%-20% off the post earnings earnigs miss, accept this dog, new lows daily and every minute, get out with ehat you can get in front of them, then buy when it start to hold bounces, not even a dead cat lasted here more then 5 min