I warned this board several days ago that it would not be enough for SPLS to meet or just barely beat estimates. The market right now has no tolerance for anything from a retailer short of stellar performance as there are just too many retailers around with solid earnings and growth rates that are selling for a pittance. Although I know that SPLS is a great company, because the market has now gone raving mad (hopefully this is just temporary insanity), I believe that within two weeks this stock will be below 20 (and be much closer to 15 than to 20).
Your statement actually answers Pegasus' question. Since SPLS always meets or beats earnings by a penny, there can be confusion when they report earnings inclusive of .com operation (which estimates are not based on). This time around, overall earnings were .26, but retail & delivery earnings were .28 (which beats by a penny).
It seems like a lot of "investors" rushed to read the earnings report, and really had no idea what they were reading. They saw the .26 number and started running around like chickens with their heads cut off. That gave MM's the chance to take their shares at a 1+ dollar discount at open. Once that happened, guys like you look at earnings, think they're good (which they are), but see the price down a buck and THEN think that somethings wrong - and then they sell! The spiral continues at the expense of sellers, and at the profit of MM's and careful buyers.
Some of the dumbest people on the planet might have been selling at the open, but even more people have since based their own investment decisions on those people's actions! It's crazy. A person who follows a fool must be a greater fool. Don't be fooled.
You have the numbers in front of you, you know about the company - have a target price for your investment and sell when it gets there (or revise your target price). Unless your target price was 22 1/2, I wouldn't sell today - and don't let actions of idiots force you to change your target price. Stick to your guns, bigsam! It's what separates investors from the guys getting massacred today!
SPLS CEO going to be on CNBC in a few minutes. If you can, watch it - I'm sure you'll decide to hold your shares afterwards...
You're absolutely right. There's nothing wrong with the earnings & sales growth, especially same store sales.
To paraphrase one of the best authors the world has ever known, the fault lies not in our stocks but in the people (not investors) who are buying and selling them --- people who don't belong in the market because they don't have the necessary patience or skill. OneG