But now they will have millions more in cash...book value will be raised and
because of the share buyback earning WILL increase in the future,,,also guidance
will be played down but results will astound....
I think you are correct. I'm not really concerned about future guidance a year or two down the road. The time is now and the near term massive profits will allow SWHC to keep hacking down the outstanding share pool by 10-15% per quarter. In no time, at these profit levels, they can easily take this private....under their own terms. These Wedbush and KeyBank goofballs can spout off all of their gloom and doom to keep the share price down. All it does is make for an easy private play for SWHC.
The fear isn't that they won't blow away earnings estimates, the fear is that they won't be able to keep it up . The market always looks to the horizon. This quarter is easy to predict. All signs point to massive sales increase and that will result in a massive increase in EPS. However, will they continue to do it again and again and again? probably not. Forward guidance is going to be what moves this stock on earnings day. If guidance is good the stock will gain, if guidance is bad this thing could drop like a rock. That being said, I think guidance will be good and the stock will be back to 11 pretty soon after earnings. GLTAL, Just stating the facts here.