The big issues keeping the stock his low is missing estimates and losing money. If these two issues were corrected the stock would be valued accordingly,
These guys do not know how to run a trial. They must know the criteria but try to get by without meeting it. Not sure if management are bozos or inexperienced. I think the former, too many mistakes.
It appears the executives running the company are paid too much and do not have enough equity interest in the company. It is a cash cow for them. They should be paid by results not just showing up.
Sentiment: Strong Sell
My PCIP insurance is no longer being offered after January 2014 and my wife's Anthem Blue Cross insurance program costing $280/mo. is no longer being offered and a new policy can be purchased for $497/mo. My insurance thru Anthem or the CA exchange will cost me $757/mo. For me the ACA is working against me. The only people that the ACA will help is people with lower incomes if the decide to sign up and the insurance companies. The loser are people like myself that worked hard for their money and will pay higher taxes in the long run.
The run-up will before December. If the drug is that good and the people in-the-know, know the trials are going well this price should hold. There are a lot of well-named funds holding this stock. It's a gamble but the data looks very promising.
I think you are missing the big picture. Intel, MSFT, Dell and HP make the server system that drives the entire Internet System Engine. Without these servers the Internet and Cloud computer doesn't work. Hand helds and tablets and very thin clients and need computing power to make them effective. Intel is the leader in making the microprocessor in these server and will not go away. If they were smart they would raise the price on these componets and reap a higher margin. Also, PC's will always be needed in business, schools, hospitals and government. Handhelds are great and have taken market share from PC's but the core use is still needed. The reason for the decline in growth is the PC industry staturated its marketing strategy, newer is better and faster, which is not true anymore. The market will decline but will stablize at some point and still be profitable.
When Cramet says buy this stock after a great run up of 60% plus, one should sell. When he says sell after a 15% to 40% retreat one should buy. He can be a bozo.
Cramer is a bozo,just put the hex on this stock. If he recommended at $3/share, that would have ben a good call. This stock could consolidate in the $4 range.
My understanding from the conference call is they said sales would be lower in the coming quarter. If the case was orders/bookings exceeded shipment during the quater that just ended then sales would continue to grow. This does not appear to be the case. This is a clear indication that customer demand either is slowing or spiked. Managing growing is an important executive strategy that can enhance shareholder value. If they indicated sales would grow the coming quarter then I believe the stock would have gone up instead of down.
I spent 25 + years in the semiconductor industry, and missing a number low or high can be a bad thing. Management should have "slowed" shipments down to just beat their target by a little and save the rest for the next quarter. Make a big shipment week the first week of the next quarter, don't drain the line. A lot of shipemnts usually are scheduled for the beginning of the next month but are shipped one to two weeks early so they get credit for the shipment in that month. It is an industry practice to ship 2 weeks early if needed to make the monthly or qaurterly goal unless a customer forbids early shipments.
I feel management blew it but can recover with solid future performnace. Hopefully they learned their lesson.
IMHO - Buck
The market value of this stock is 50% of sales. If this company was valued "normally" the stock price would be at least 50% higher or even 100%. Nor sure way the discount. $3.00 is cash and no debt. Somethings keping it back. Anyone have any ideas why???
Why would anyone buy shares at $8.00/share when new shares are being issued at $6.500 resulting in a 17% dilution ??? Why would the company sell these hsares at $6.50 when the stock price is ~$8.00/share. Does not make snese to me. I sold at $8.2 to see what takes place next week. I feel the stock could go down to $6.50 when the issue transaction happens or they up the price.
IMO - Buck
DR.Ted sold last year 14,000 shares at $8.47 abd it appears top management sells their option regularly. There is little incentive for management to bring value to this company. Plus it appears most of these guys are second rate.