ATHN's CEO and College cheerleader type of delivery on the CC did not impress us. He came on Jim Cramer's Mad Money a few months ago and convinced Cramer that his co will be a dominant player in the Cloud. Cramer took his spiel and literally compared ATHN to CRM and many amateur investors that watch his show bought ATHN." Psychology of the Call" blog's opinion is that ATHN's buyout of Epocrates for nearly $300M proves it is not a successful Cloud player as Epocrates was an unsuccessful Clouf player; follow? The excuses on the CC were rampant and many, a couple of the analysts sounded bewildered and asked some tough Q's, and the execs always offered excuses for an eroding bottom-line as sales are being raised as a result of the Epocrates buyout, but not even by as much as anlaysts 1st assumed, so Epocrates has likely lost mkt share and ATHN execs are not being completely transparent. In our opinion, rising sales estimates after a near $300M buyout but cutting EPS cannot be excused, esp with a stock carrying extremely nosebleed forward metrics. Anyone privvy to why ATHN wasted nearly $300M on Epocrates and cut EPS by 14%? We hearing that VZ is moving into the Cloud aggressively, VZ has very deep pockets.
Cramer is a buffoon. He is a self limiting disease. You can't take his advice past the point where you don't have any more money. If he were honest he would keep a score card of every buy and sell. But he is not. He gives me the creeps. If he had been good at what he did he would be ten times richer. And his clients would have not left him. Subtract the stock lingo and you are left with Pinky Lee.
They have a real problem. They can't get out. Insiders own fewer than one days volume. The institutions got in a long time ago. They know nothing. They are the recipients of hot money. They have to invest. So they focus on Pygmy concepts like sectors they think are hot. This sector is cloud computing. What the hell is the cloud? They have no clue. That the cloud is just a hosted server is unknown to them and unknowable by them because they are unable to admit to others and themselves that they don't know something. They don't even know they don't know.
But if these bozos were to start selling at 300,000 shares per day it would take them THREE MONTHS to liquidate.
So they go to Plan B. Which is to try to convince the rest of the world that the company is something new. It is now an incubator and a landlord and an iPhone app and a content play.
Of course it will end badly. For them. Not for shorts. Just like Facebook which has 1 BILLION users and will be a home run when it gets to 2 BILLION???? LOL.
The people on CNBC are also clueless. If they weren't they wouldn't be hacks on TV.