Price action is terrible. I hope I'm wrong, but if the quarter is bad I see this thing getting slammed 20% or more. Valuation could easily get more absurd.
I agree. Too many negative signs. Poor relative strength. Insiders rewarding themselves with too many stock options, which dilutes the stock. Too many complaints about how slow the Ultra is. Much more competition than last year. Last year they had a hard time keeping up with the demand for the Leappad. This year they are discounting right and left on their software. No guidance whatsoever. I sold the last of my rather large position percent wise of my portfolio and moved into Apple again. I hope I am wrong for all the longs.
If they blow out earnings I guarantee you the stock will be flying up, not down this time around. I think this is a lot different than last year. Leappad will have been on the market for another full holiday season, short position is double what it was a year ago, all the rumors of poor sales have already circulated. Q3 is going to be very important. In the past two years Q3 sales were less than Q4, but much larger than Q1 and Q2. Make sure you look at Normalized earnings and revenue. The headline number from a lot of the news agencies may include all the gains from the NOL's.
BTW - I was just doing some Googling and found this news story from earlier this month. Did LF press release this at all? I don't remember seeing it.
After a successful launch of LeapPad Explorer last year, LeapFrog, a leader in educational entertainment in collaboration with MBE (My Baby Excels) have already released their latest LeapPad 2 in India.
LeapPad 2 tablet has been priced at Rs.11,999 and comes in pink and green colors. Software and accessories are priced at Rs.899 and above.
completely agree. even if they blow out earnings we could drop 20%
I think it will depend on the track record of the pps going up to the earnings release. If we go into the earnings date flat with no rampup into the pps we could see a pop-up on the surprise. If we have a ramp-up into earnings it may be the old "buy on the rumor, sell on the news in which case I usually sell half the day before the release, that way you win if the pps goes up and you win if their is a sell-off and you can pick up the shares you sold at a lower price. Everybody has to do what works for them. Good Luck ALL !
simple introduction of dividend would stabilize things. forbid ceo babour to sell the stock of this #$%$ as simple as that. finally, wall st. does not like companies it cannot control i.e. companies with zero debt like LF. make some debt, allow rulers of market to have some control over you, get into some debt but at the same time introduce dividend and only then the prospect will materialize. only then babour sell your shares, when they are 18 and not a cent less, and not 8 like some cheap jerk
Sentiment: Strong Buy
I think a major focus has been holiday retail sales. If the PERCEPTION is they're going to be bad, LF will suffer. Will have to wait and see. A lot depends on the clown show in Washington.