Is the fact that both of FIO's biggest customers delayed orders at the exact same time for the exact same duration... seems way too coincidental or way too convenient... shorting the BS spin after being long into earnings...
Didn't you hear what the CEO said. This is law of small numbers. He said for 7 quarters their two largest customers offset each other with their buying. For this one quarter they are not. Imagine rolling two dice. The probability of the two dice ending up on six is higher than if you rolled one thousand dice and they all ended up on six. The problem they're having is due to customer concentration not malice.
However the short idea was expressed, it spawned a herd.
Shorts know the laws of numbers and couldn't care less. They know NUMBERS that are really LETTERS. They know letters from DEAD languages. Most importantly, they have DEAD LETTERS that are outside the law of any number, big OR small.
They went short - big time - six to nine months ago. How far ahead do folks like FB and Apple plan a head? Where do you think the failure to communicate is really occurring?
You guys HAVE to realize this is an investment, not a trade. Apple and FB are moving to the cloud....everything...to the cloud. Do you know how long of a process that is?!?! 2quarters is quick in my opinion considering the amount of data these companies possess. If you are looking for a quick trade go play nflx or hlf or amzn. FIO is not for you.
People don't understand how revolutionary their product really is. Fio is risky i give you that, so was Home depot, microsoft and wal mart when they first started.....just sayin.
It seems one out of three shares saw this coming before management: the shorts. The market maybe sending messages that management just isn't getting. That's the way it played out for STEC back when it had a similar %short.