This is playing with 52 week lows right before their biggest game is released, can anyone explain to me why this is happening? I'm not an expert. I also don't own this stock yet but have been shopping it for sometime
Yes someone is sitting on this stock, and has been for some time.
I've been trading this stock for four years and watched the same trends repeat. I've read the inane arguments on this message board for why this thing drops every earnings. Personally I've always suspected some hedge fund making millions off the popularity of this stock attracting inexperienced investors. It goes something like: massively short after hours into earnings no matter what, watch inexperienced retail investors panic and sell, buy back cheap shares at the end of the day. This is a repeated trend for four years on earnings day, with the occasional exception. It has also been documented on this forum how the price routinely drops on options expiration week. Someone has been controlling this stock with precision and will continue doing so as long as it's making them money.
This is unfortunate for longs because the positive earnings should be the day when this stock breaks out of trends, like the recent downtrend. Instead we see neutral and more often negative earnings days. Last night in after hours as this stock started to fly there were HUGE sell orders placed to keep this down. This is why the stock just never seems to move. The company is so solid with earnings growth that eventually the valuation is just going to get too ridiculously low (some articles are suggesting we are probably there already) and some large funds will start gobbling up shares. Until then new investors are going to continue to get skinned on this stock and likely turned off to stock market investing.
Great post. The only negative I see on the stock is tangible book value. It's pretty low because they carry a ton of goodwill. Also, Cramer really whacked it tonight. He said 'don't buy' because it was in a highly competitive, uncertain industry.