I don't have a position in GILD now. If Medicare becomes able to negotiate drug prices, that would affect GILD's expected price. Besides that, GILD has already posted comments regarding subsidizing patient co-pays.
I took a few hundred dollar just before 1 p.m. EDT and have no position in CELG now and may not look at it until Monday.
I added to that starter put position earlier this week and so far it's starting to work.
Thanks for your concern.
This is a time in the cycle when markets go up and down wildly. In addition there's a monthly options expiration at the end of the week. It's not unusual to have a large up day in the middle of the week, often Wednesday. Though I closed out my CRM options position yesterday, I'm holding some stock short because I think today's bounce could bring out sellers either today or within a few days. Thus, people looking to buy puts either this week or next week will welcome today's bounce. CRM doesn't benefit from the collaboration of AAPL and IBM. In fact, such collaborations could be detrimental to CRM.
Please bid up the calls and push the put prices down to bargain levels today.
While the title of that article refers to sales and margins, a key thesis in the article is about earnings, not sales.
As CRM has shown, it's possible to have increasing sales along with decreasing earnings, no GAAP earnings, and increasing GAAP losses.
There's an interesting statement in an article about large tech. The statement refers to 16 years out of the prior 23 years having had increasing earnings and earnings are likely to shrink. CRM and VMW are listed as tech examples. Since CRM doesn't have GAAP earnings does that mean GAAP losses will increase? The point of the article is to expect reduced earnings in tech stocks that have had GAAP earnings. When there are no GAAP earnings now, wouldn't shrinkage in earnings translate into growing GAAP losses?
Each acquisition postpones if or when CRM will even make 1 cent in earnings. Even before the last three acquisitions, CRM's CEO said not to expect any earnings until at least 2016. With more purchases, would the possibility of any earnings move out to 2017, 2018, if ever? BTW, taking out expenses and calling them one time cost, doesn't create GAAP earnings.
...just as shares are diluted when more shares are issued to pay in part for another acquisition. The purchase is part stock and part cash and both come from stockholders, not insiders.
Since your July 1 post, instead of going up, CRM went down. Under historical prices there is a "print" error for the low of July 11. The move up today (a Monday rally for market prices) was to a lower print than the July 1 post.
Meanwhile, it's been business as usual for CRM: an acquisition that dilutes existing shares. At the same time, the CEO has taken profits of millions of dollars by unloading some stock.
The bottom line is a greater distance from ever reporting a profit of even 1 penny.
I won't predict where KORS will go and when, but this afternoon I closed out the KORS put position I started last week. It wasn't going to expire this week, but I decided there was too much time premium remaining and KORS could bounce from today's drop. You may be right to wait for $80 to buy KORS and you may be wrong. It's hard to predict KORS at this point, IMHO.
Do as they say or do as they do? A few million dollars last week and a few million dollars this week, etc.? I acknowledge that insider sellers will get more stock, but that would be at the expense of retail longs who "gift" the new shares to key insiders.
I doubt this will move the stock up to where I'd like to add to my short position.
The "good will" number will be interesting. It's possible that the developers of this start-up are receiving more money in stock than they would expect to receive if they continued honing the start-up. Why else would they sell now? Will they cash in their "winnings" and apply it to more start-up activity or settle into comfortable real estate or what?
In the very short term you were right. I closed out that put position early today and took a whopping (kidding) $20 loss, on my August 88 put, instead of building out that positiion. A couple of months ago, I did well with CELG. I didn't want to carry any CELG puts into the weekend. Despite upcoming earnings, I chose to restart a token 1 put position at a higher strike price (90) than my former position. I'll decide next week whether to add to it or just hold it. Earnings announcement sometimes come with surprises as some stocks did this week. Besides obviously CELG is not one of my major positions.
When stock is issued in order to have "capital" for the acquisition, does there have to be a time lapse before that stock can be sold? It's possible that the combination of the acquisition and Friday relief rally kept CRM (temporarily from falling more today.
How many longs who claim they are in it for the long term of 3+ or so years, will give in and sell later this year? Will the seller to MB be a major seller as soon as allowed? That would monetize having sold a company at likely a high multiple.