It was up 13% from the 22nd's close, and closed up something like 58%. I thought to myself, "I wish this would go down again so I can buy in and make big $$$". And now it is down again, way down. And I can't figure out if I should buy in or not.
The bullish position makes sense and is logical. GTAT can probably survive, though with heavy debt. (they probably will need to renegotiate the rates) The short position makes sense too -- it is not unreasonable for GTAT to go into full BK. The judge SEEMED sympathetic to shareholders but you never know what is really in his mind until the BK proceedings are complete.
IMO it's definitely possible for GTAT to go one way or the other. Hedging methods with options might be a good idea, if it weren't for the fact that the options on this issue are completely illiquid.
Since the Fed hasn't changed their course of action in the entire year, what makes it dovish or bearish?
Some people just like trolling on Yahoo messageboards. Wonder what the response would be if people had been killed. Euphoria?
Man, I was reorganizing my text and I realized another error. "In that update" = in the business update last month.
Hmm. Speaking of revenue, do you know why their revenues tanked this year? 2.711M , 3.460M, then BAM! 1.434M and 1.290M.
* Another clarification: being cash flow positive is good, and of course being profitable is a different matter. Being profitable is a good goal to have.
FYI, Mutual funds are not taxed on their investments.
Most DDD stock is owned by mutual funds. The tax responsibility is transferred to individual owners, which usually don't do tax loss selling. The vast majority of people owning stocks do it indirectly through 401Ks or IRAs and have no idea what is really happening with their cash.
In that update, they discuss streamlining operations and being immediately cash flow positive. That would be definitely great in the short term for the stock price if they can show good progress towards this goal.
I am hoping that CYTX management will clarify the dilution initiated a month ago with reasoning as to why they set it up the way it did, instead of getting a normal loan as suggested by their September 22 business update.
What I think happened (best case) is that they just got squeezed in funding and had cash flow problems, couldn't get a loan, and had to take a shark-like offer in order for the banks to extend short-term credit. In the form 8-K filing on October 8, any dilution in excess of 19.99% would require shareholder approval. Since right now the deal is for up to 56 million shares, that's 75% of the current common stock. (56 million / 75 million), this means shareholders could reject all but 15 million shares of dilution, which is again good for the stock price.
You shouldn't try to estimate the margin in terms of net, but gross. Net margin is currently 50%, although I expect that will slide over time. SG&A is not going to grow as fast as cost of revenue, and anyway total net operating income is about 17% of sales...
Not a small market.
I have seen that too but it isn't always like that.
Stock was trading at .50 early... 7% higher than it is now!