After a correction of just over 20% today on intraday low of $71.28 from recent top of $89.66, with a range of intraday of over $5, and closing above yesterday close and near today's high, I'd say it is a reversal signal...
Whether it will restest the bottom first to form a double bottom before heading higher, that remains to be seen, but I'd say the bottom is near...
Down 24% on no news since September... and down 7% in an hour this morning on no news... just as irrational back in May 9th when it goes up 36% from $60 to $82 - it's like a casino!
This is just plain ugly, irrational, and stupid!
After all, this is still a going business concern that sells real commodities and products and makes good money and growing, and not a company that hype some concepts or ideas that's still waiting to be proven... (This feels like the way they punish apple from $700 to $400, both low PE)
Thanks! I just found this in Seeking Alpha article:
Friday, Nov 15
EA, GameStop slip after NPD releases Oct. game figures
After rising 52% Y/Y in September on the back of huge sales for Take-Two's (TTWO -0.2%) Grand Theft Auto V, NPD estimates U.S. physical retail video game sales only rose 12% Y/Y in October ahead of this month's PlayStation 4 (launching today) and Xbox One (launching on Nov. 22) debuts. GTA V was once more the bestselling title.
GameStop (GME -2.2%) is selling off on the wake of NPD's numbers, and so is Electronic Arts (EA -5.7%). Investors in the latter might not be pleased Madden NFL 25 (#2 in September and #1 in August) and FIFA 14 (#5 in September) fell out of the NPD's list of the ten top-selling games. EA's Battlefield 4, which launched near the end of the month to muted reviews, came in at #4.
Take-Two's NBA 2K14 (#3 in September) and WWE 2K14 respectively came in at #7 and #10.
Activision's (ATVI - unchanged) Skylanders: Swap Force was #8 on the list. Diablo III, which was #4 in September, dropped out of the top-10.
Hardware sales fell 8% ahead of the PS4/Xbox One launches, and only totaled $171.7M. Accessories sales rose 1%.
We touched $74.46 today on a mid size down day... but did not go materially lower than the previous day low of $74.50, so far still very good... we have a doji candle day, we are opening and closing at almost the same price... that means tomorrow is a wild card day... either we hit $72 to retest lower or hit $78 and moving up...
Does the street believes that going forward in the next fiscal year, that will concerns of competitions and slowing growth that GMCR will lose either 30% of sales, profit, or market share? Or is this just an excuse to punish the stock?
Just plain irrational ! Not justified... way oversold! (and yes, there was a downgrade from buy to neutral this morning on similar concerns/confirmation on slowing k-cups growth data, etc - but 7% drop!?)
Let's all work together and crush Einhorn, like the investors and Carl did in HerbalLife with Ackman... BUY BUY BUY at these levels, and defend $65!
Sentiment: Strong Buy
Well, we all understand that stocks goes up and down, based on various reasons... it is really the size of the moves and the volatility of this stocks that is the irrational part, in my opinion...
I guess opinions are just that, opinions... it is subjective and based solely on our perceptions and understanding of various info, or lack thereof... there is no such thing as the right or wrong opinion, unless we are asserting we are stating facts, in that case there is such a things as the right facts vs. the wrong or inaccurate facts...
It looks like the street wants the gap to $60 be filled, and won't let up with more downgrades to neutral until that happens...
$59.62 back in May 3, 2013 was the high before the big gap up to $67... Today we just dip to $59.77 at around 2 pm EST... close enough? (Also if do bounce here to above $65 in a week or so, that would make this a good double bottom to the Oct 24, 2013 low of $60.15 ... We'll see how that works out... LOL!
This is just nuts, we are approaching a 10% drop from a recent high of $26.58 !!! Does losing 2 titles off the top 10 sales list justify that kind of sell off? Give me a break!
Today's drop so hard-cored, over 6%, that the former support level of $82 could be the resistant level for the next while...