They reported horrific numbers, but it was manipulated up by someone desperate enough to keep the price unchanged in the after hours. This is unsustainable, and the stock needs to crater in the open market. According to my calculation, the drop needs to be bigger than 10%.
"The outdoor sports lifestyle company reported a Q1 pro-forma loss from continuing operations, of $0.10 per share, ex one-time items, compared with the prior-year period's $0.16 per share. Revenue was $392.6 million, down 4.8% from million in the same quarter last year."
"Shares of Quiksilver Inc. (ZQK) declined 5.1% to $7.30 on moderate volume after the skateboarding and surfing apparel maker posted a wider-than-expected quarterly loss on revenue that fell short of estimates."
There is also some 18m shares short out there... so there may be some of them short below $7 from last Q who now want to call off their bets. Delusional pm longs with box shorts may also think the outlook is strong enough now to pull the hedge, so that is some goose buying for a bit. As we wrote a few weeks ago, c'mon believers -- get out there and goose this to $8. That happened... out 5th correct call in a row on this under the new mgmt team. Our sixth call? This is headed for the #$%$, even if it takes a few days or weeks.
We have no doubt some of the funds in the shares net long will be bailing over that timeframe... this stock is dead and rotting right along with the brands. LOL
It may take a few days for people to figure just how effd up this "turnaround story" really is... but pm long the shares as well as the wishful thinking analysts who have yet to figure it out are going to have months of time to watch the stock erode. Any pm buying this up here is programming losses with some degree of certainty.
If you have not, do listen to last night's CC... these guys are in WAY over their heads and seemingly have no idea how badly positioned the brands are. The reality is that they ought to close out the brands and start over.
Further, only one analyst seems to grasp how ridiculous the 2H2014 loading is now... and the mgmt team is oblivious to what credibility cratering coming will cost the stock.
Remember, they missed on EVERY piece except a pissnt beat on Roxy, the worst of their three tired brands.
behavioral - how did you know that 3 algorithms are supporting the stock? Do you just say that because the stock is acting weird and that is the only option? New to all this and want to learn so excuse the newbie question. Thx.
I get it, but the trading is funny and it does not act as expected....I think I will cover and move on, as staying the course is not something I want to do in this crazy market. Especially not if GS is really the one supporting the stock.....I doubt that but there were at leas 3 algorithms supporting the price in the AH yesterday, which was stunning to see.