SYMC is up 1.15 (at 39) as I post but that's down 2 from the after-hours high and this morning�s early run up to 41.
So how do you explain it? Well it looks like there were a lot of "front runners" who were betting that SYMC would beat the estimates and go up. Then they sold the news. Not enough investor type buyers and short covering traders to keep it going up. That doesn't mean it won't continue to climb in the coming days and weeks. The 3-point after-hours gap was excessive and I thought it would pull back a bit but surprised to see it loose 2.50 and only recover 50 cents by noon. It's not the first time the market has surprised me nor will it be the last. I�m holding as I think it should recover another 0.50 to 1.00 into the afternoon. Depends largely on whether the market continues to recover.
Anyone notice that SYMC dips when the NAZZ climbs and visa versa. Counter trading. Is there a TA �theory� the explains that action?
SYMC's quarter was boosted by $37 million in revenues and $15 million in profits by the weakness of the dollar. This is not going to happen every quarter.
Without that boost, SYMC would have barely met their estimates. Of course, the dollar has fallen more quickly this year, so SYMC can expect a big bump this current quarter too.
However, some analysts claim that SYMC missed their enterprise revenue targets. In other words, SYMC's consumer business was so robust that it overcame the weakness of its enterprise business. To quote an analyst:
"Symantec's enterprise security business benefited from exchange rates, Piper Jaffray analyst Gene Munster said in a note Thursday. But he was surprised that enterprise security sales of $186.7 million fell short of his $202 million estimate.
Retail box sales combined with favorable exchange rates drove the upside in the consumer business, Munster said"
Unfortunately, there is a massive threat to SYMC's consumer business from MSFT. JT was really ticked off in the CC when the UBS analyst mentioned MSFT's imminent entry into the AV business. When MSFT enters the AV business (it may only enter the consumer business), SYMC will feel the heat.
Though I am net long SYMC and hope and wish that the company prospers, I think that $42+ is quite rich and will sell out all my positions by selling in the money covered calls.
Overall, I am not surprised that SYMC is selling off. Nor am I displeased since I am adding to my positions.
Me too, not only what you mention, but they were UPGRADED this afternoon to a STRONG BUY. I have the new from Scottrade but I have not yet seen it in yahoo? Maybe the general public is not aware of the upgrade???
well...since the NASDQ is off 13 and change, and SYMC is up 1.23 or so.....can't be all bad.... Who's concerned with one day's activity anyway....just sit back, relax and enjoy the ride....it ain't fast(except at times), it ain't all that exciting but it sure is damn comfortable!!!!