It's about the future, not the past my friend. That is the FIRST lesson about playing the market and you need to learn it.
An analyst on the conf. call asked a very interesting question about the co's cafeterias and I think he received a b.s. answer. If I understand it correctly, the analyst was asking why the company puts so much money into cafeterias that are not profitable and apparently do not make any lease payments for the land they sit on (land owned by the company). Any thoughts?
I agree but do NOT underestimate the power of overall market sentiment. Everyone's a seller now and where she stops nobody knows.
I don't disagree with this, but just like with fuures contracts that are never actually executed this can continue indefinitely until someone actually forces delivery. And who knows when that might be.
It calls to mind the old Hemingway quote. "How did you go broke," I ask him. "Two ways," Bill said. "Gradually then suddenly."
Since the year began, there has been a hair raising divergence between the ETFs (GDX and GDXJ) and the Spider Gold fund. They tracked each other most of 2015 and now the miner funds have fallen off a cliff while the prosaic fund (which tracks the price of the asset) has been relatively stable. You can see this easily in a comparitive chart.
Don't understand your reasoning. The MM that sold the puts would want it to close AT or ABOVE 12 so the options expire worthless. Why does that portend a rise after expiration?
If they purposely ran the stock down that would be securties fraud. On the other hand it looks like this market will take care of it for them.
Why not try using your brain for a second. Revenues dropped because their reputation was tarnished. They don't sell the product anymore and they aren't a restaurant (like Chipotle) that can do long term damage to someone's health--people don't eat their flooring.
There's no reason to think that revenue won't return to at least 3/4 of the historical average once people forget who the heil Anderson Cooper is and want real floors at a good price. And if it does the current MV of the stores will seem ridiculous--less than 2 years of rev's.
They have 355 stores. The stores are capable of doing $3 million a year--and were before they were hit with a ridiculous, trumped charge about a product that was a comparitively small part of their revenue base.
The market is now valuing each store at about $970,000. The stores aren't going away and neither is the need for flooring. I'll take my chances--and you take yours for a max $12 a share gain and a nearly unlimited downside if your bet goes against you.
In June of 2015,there were 9 actions consolidated and transferred to the USDC for the Eastern District order by virtue of a ruling by the Multidistrict Litigation panel.
I suspect you are going to see attrition as some of the class action lawyer hopefuls who filed the individual suits are relegated to junior positions in the MDL. I also suspect this thing to be quickly settled probably for about $10 million.
Was your favorite cartoon character Thumper when you were little, Corporate Boy? Or were you more of Jim Neighbors pixie?
I respect your analysis of the situation. I would only say that, in this kind of situation, there is no reason NOT to wait to see what develops. If they ship starts to turn back north and you miss out on the first 4-5% who cares? It's an insurance premium to guard against what could be a dangerous situation.
It's Tinkers to Evers to Chance. I have no doubt at all that Goldman was behind the Zaks' "research report" yesterday and that they are manipulating this thing.
The market is crazy. I've been watching stocks trade for 25 years and I've never seen anything like what is going on. Pull up a one minute chart of WYNN yesterday if you don't believe me. The computer trading, HFT, phantom orders, etc., make volatility absolutely insane,
Just repeats the same rear view mirror information ad nauseum--lawsuits, margins lower, etc. One wonders why a guy like Tilson would cover since everything is so bad...