It's now obvious the shorts were baited by the big boys
First we have an analyst that downgrades to "hold" after a nice run-up, then the Seeking Alpha article, etc. The shorts then piled on and sold borrowed shares to big cigars who were backing up the truck. Friday's huge volume is an indicator of this.
Well, now that truck is loaded, the transmission has been shifted into Drive, and shorts are bugs on the windshield.
You don't see 10% price movements on no news without this being the case.
and you believe they will make this quarters estimates and not reduce guidance for the year? What did they make last quarter 10 cents? And they need to make 26 cents this quarter? And 43 cents to make full year? Someone is being baited...absolutely...this company will miss and guide down... below 20 after earnings. The P/E is well over a hundred...did I forget to mention that? This is a squeeze absolutely...most likely a short got wind of a buyout rumor...thats all it can be. The rumor is just that...a rumor...if there is one...the short is not covering because he thinks the company will beat and raise.
Did you just start following this stock yesterday, like apparently a lot of shorts have? Otherwise you would know that:
- Earnings impact this year is due to an acquisition, i.e. the company is growing, not shriveling up.
- Pega has continued to crush the top line quarter over quarter for the past few years, record revenues each time with upward revenue guidance on many of those earnings releases.
- 89 new employees added last quarter, when everyone else is laying people off.
- The company is in land grab mode, not "protecting earnings mode". Earnings don't matter when you're grabbing all the business that's ready to be had and further entrenching yourself as a leader in the space. You can fatten up the bottom line later after the lion has eaten all it wants.
Today is what happens when traders take a quick look at the bottom line and pull the trigger on a short.