The only eps evidence is 8 cents from December. Annualized, that puts the pps right where it is trading. Investors have gotten ahead of themselves, and sometimes apparently the market slaps that notion down.
Sure it gets scary, but confusing? I think it's just proving time for Rfmd, and nothing's wrong with that requirement, or the price.
it is quite normal when fundamentals look strong that the stockprice is ahead of actual earnings. in my view the stock is even behind what it should be. This company is in its best shape ever. I can imagine that many do not see this view the many stumbles of last decade, but for me that is a fact. We will see what happens on D-day next week.
Truly, I have seen SO MANY TIMES where stocks get way ahead of themselves and JUST KEEP RUNNING FOREVER (i.e. Amazon, Net Flix and even look at the run GROUP ON has had and HOV had). Momentum and big money takes stocks where they want to go and P/E has very little to do with it.
This stock should be rocking with all the UPGRADES and good news and it is trading very weak and everytime it had a run it sold off in NO TIME (look at the run to $5.50 and then $5.45).
Truly, you are a SMART GUY but like myself we go on fundamentals. The real money to be made in a stock like RFMD is just playing what works. You have been in this stock longer then me but truly you tell me how "shorting every pop" until the Gap filled would not have made everyone on this board a lto more money (and been easier) then holding this stock like everyone has.
You really believe if we destroy earnings and issue great guidance this time "will be different". If you ask me I thought the last two earnings reports were about "as good as it gets" and the stock has still been manipulated for months.
My point if we are wrong this stock gets CRUSHED and we all "hold the bag" but even if we are right with seasonality around the corner I don't see us making much.....so I ask "how is that a good risk/rewar" and probably why Najarian and boys bought puts.....they play risk/reward and we play fundamentals and believe this time it will be different.
I PROMISE YOU the money to be made if earnings are good is to SHORT THE POP........that is a bet that has a 95% or more chance of working and that is why none of us are as successful as people like NAJARIAN.....they have figured this out and we keep hoping "next time wil be different" because we are all too afraid of selling and missing the run to 10 !!!!! That run isn't coming this summer.......if it ever comes it will between November and April......no May through Octoboer........the risk/reward is definitely more RISK and you should know that.