The cutting of the dividend could be THE catalyst to spur positive sentiment on the stock. We all should be excited that there's no need to borrow more money just to cover the dividend. I will be happy with a 50%-75% cut now, and still get 3.5 to 7%, PLUS a nice bounce back in the stock to mid $30s.
The best news for longs is if SDRL cuts their dividends to a more sustainable amount, say 5%. This would be a huge catalyst as investors would then be rest assured that SRDL management is sane and pro-active. IMO.
This is the stock market. When everyone and their brother is saying drillers will go lower, that's a great contrarian indicator that we're done with selling soon. The market NEVER does what everyone thinks it's gonna do. If so, everyone could be zillionaires since all predictions came true!! As it is, most people lose money in the market timing thing, including the pro's.
Agree. Someone who's a lot smarter than all of us said: buy when everyone is selling. That advice has definitely worked out for him.
technically this thing is going lower until it reverses then it retraces higher to $45. No fundamentals just the bots in control here. simple algo says if stock is in downtrend and then goes up 3% in a day, JUST BUY BUY BUY. So that's what's coming, either today, tomorrow, Friday, or sometime next week. When the drillers bounce it would be as amazing as the bottomless selloff we've seen recently.
I am looking for $2.50 per share to buy!!! And my granma is the head of the Fed Reserve!!
Yes. But this is the stock market we're talking about. It's all about sentiment and expectations. If Icahn sneezes on a stock, it's good for a 25% pop. Now, the coast is cleared for a run to $32 in days. Just the way the game is played, fundamentals don't matter in the short-term.
The ones who lost were the short-term traders who jumped on GTAT recently hoping for a quick buck. Unfortunately, they just gambled with the AAPL news and lost - since they traded not invested. Although if you really thought it through, as I have posted in my prior messages, it would be unreasonable to think GTAT could have pulled off within ONE YEAR, the Mesa factory installation, production ramp up, testing and delivering Saphire on massive volume to earn a place in i6. The fact that iwatch has Saphire is extra-ordinary. But thanks to CNBC and other news mongers, GTAT "failed". Once the dust settles and cooler heads prevail, it will be apparent that GTAT business is still as sound as ever. And the fact that we got another chance to get in under $13 was the real story.
What's even more pathetic is the investor reaction to all this. GTAT is not dropped as an AAPL supplier. They are still going to supply just not now, but next year. Seriously did anyone really believed that a brand new facility could be erected and the innovative process of providing Saphire with an effective yield and on a cost-effective basis could be perfected, tested, ramped up and manufactured ALL WITHIN ONE YEAR??!! I mean it is completely reasonable that GTAT Saphire didn't have time to get into the first run of the i6. They DID manage to get in to the iwatch. Everyone is so unreasonable and so impatient! Come on guys, where is your conviction? GTAT is still the same company with an AAPL contract, Saphire for all types of uses, upcoming solar, LED and Saphire innovations and lots of profits!! This $1.6B company has already re-iterated they will gross $700M next year - that's a Price to Sales of 2 - with $1.50 per share of profits! Now go sell GTAT and buy GPRO, CMG, TWTR, Z, NFLX, LNKD, YELP and other high-fliers with Price to Sales of 100 or more!!!! Ridiculous!!
People are not thinking about the other GTAT business lines. Solar equipment - which is on fire!! Let's all sit back and watch the snap back as short-time traders depart and there is a mass realization that GTAT is a steal now.
OK since you cannot predict what short-term glitches may come tomorrow or next week, don't worry about it and believe in the long-term. If any short-term pull-back, I will buy more and thank heaven that I am getting more shares for my money.
Ironically GTAT is not a play on Saphire in iphone 6. Even if Saphire is not going to be installed in i6, it is the future and it will replace the inferior GG in many devices, especially in Apple devices. But, GTAT has other successful businesses and products which are being completely ignored here. Do your DD and you will see. The one thing that we really should be excited about is the quality of the management. This has been proven over and over in the past few years through some really tough times. So, I'm no investing in Saphire here. I am investing in the quality of the management. And in a few years, my retirement fund could be nicely enhanced thanks to my 12200 shares of GTAT. Not selling a single share for the next 5 years.
Correct. It's a camera on a stick - and it will change the world!! Surely this disruptive technology will change the way business is conducted in the world, no? Or perhaps it will cure a deadly disease, no? Then, it must help save the environment, no? OK, then you got me. Why is this selling at such huge valuation again?
Yes yes - can't believe how greedy longs get and how short their memories are. How many times in the past did a Fad stock shoot way way up and NOT come down sharply? Ever? Name one instance. I can name hundreds of examples of highflyer FAD stocks that got crushed after a spike in excitement sent up their stocks irrationally. GPRO is so typical it's funny.
Totally agree. CAT's bounce here is simply due to cost savings which can only go so far. The underlying fundamentals of their business is deteriorating. I see a pig with lipstick. I smell bacon.
Not really. Good reversal today with decent volume. This thing wants to bounce back - at least in the next few days.
Actually shorts probably pushed it here not the longs. Be careful here as technicals point to a sharp retracement of 50% of the recent rise. So $17 can come in days. Buy some put protection - it's cheap here.
Dan, I think we have many non-believers on WS. I cannot fathom why GTAT gets no love here. Just because it has had a great last 12 months it doesn't mean it is too high. Thankfully our trump card is the amounts of short position in GTAT. This will inevitably create a massive squeeze soon. The same ANALysts who downgrade now will soon upgrade when GTAT is above $25. Go figure.