It seems like when there is some overhanging fear over a sector, like fear of dividend suspensions, it allows the shorts to get the upper hand and the longs to be skittish, resulting in directional moves based upon the underlying commodities, but the moves are very exaggerated relatively speaking.
That means that when / if the overhanging fear is found to be baseless or it passes, the bounce back move will be huge. The question is when?
Yeah it's amazing isn't it? Some stocks don't have to make a profit as long as they are growing their subscribers or sales, like AMZN and NFLX. I hate it too but I guess the market can remain stupid for far longer than we would imagine. Could they still be growing like they are if they priced their products so that they make a profit? I doubt it.
They do sandbag alright. Their guidance for Q1 EPS was $1.21 - $1.26 and they came in with $1.37 or $1.33 if you subtract the one time benefit of $0.04. So that's +7.7% better than what the midpoint of their own guidance was!
By the way, the consensus estimate for comparable store sales was +3.4% and ROST came in with +5% vs their own guidance of 2% - 3%, considerably better (2x at the midpoint).
Yeah this should pop but even if the market decides to be obtuse in the short term, I'm in it for the long haul anyway.
Actually now that I think about it, it isn't so shocking that cnbc avoids ROST since Dana Telsey got her analysis on ROST bass ackwards wrong a while back and now since she is a friend of the show they cannot talk about ROST. Fair and balanced wall street analysis......NOT!
It shocks me the way cnbc is so obsessed with TJX and GPS and APO and M and JCP and..........., and rarely if ever mentions ROST............on second thought maybe that's a good thing........
Nice call. Well she probably is sandbagging as usual but she increased the FY EPS guidance by about 2% at the midpoint and tightened the range a bit.
Even adjusting for the 0.04, 1.33 still beats consensus of 1.28 and the way the stock has been trading lately, that beat was definitely not baked in as there has been a lot of negativity regarding retail stocks as proven by the way the pop it got on the TJX results was rapidly taken away.