actually the stock is up because some people discovered that the company will soon bring a 3D-printing product to the market
absolute fantastic gain - thanks to the guy who had the $5 bid for some minutes
was waiting for this to be picked up - with the latest earnings report and guidance I regained confidence in the company's strategy and execution and took the 3-D-printer story as a nice add-on. Bought a good chunk below $1.90 last week but will be holding and look how this plays out.
this will be below $3 today and perhaps below $2 going into the next earnings release - the company shows weak execution, a giant cash burn and has zero visibility going forward. Cash will last through 2014 and then it will be over. No one should own it here. Just because it is down 50% that's not a reason to buy it here.
by the way Deutsche Bank lowered the target to $3.50
no - that said enterprise revenues were also down despite management trying to blame the government shutdown. It's just weak sales execution and not the shutdown. This will be in bankruptcy in 2015 at the latest.
that's utter nonsense - it just means that the local government wants to protect LDK's local operations mainly because of the jobs. Therefore the loan is restricted for local use only. The loan will be senior to bond- and of course shareholders so in case of bankruptcy the local government will be able to take over the LDK operations located within their region. The total debt situation of the overall company remains unaddressed.
Violin Memory downgraded to Neutral from Overweight at JPMorgan - JPMorgan
downgraded Violin Memory with a $5.50 price target following the company's
weaker than expected Q3 results.
SSS up nicely but this won't help the stock today
as I said before the stock is very difficult to borrow so I hardly expect much if any influence from shortsellers. The selling pressure is solely due to the millions of shares bought at much higher prices solely because of a blatant seekingalpha article which promised retail investors that the stock would reach orbit after following Q3 earnings.
Deutsche Bank downgraded Violin Memory citing poor execution and a high cash burn rate following the company's weaker than expected Q3 results and outlook. The firm lowered its price target for shares to $3.50 from $10.
frankly I don't see any reason to short the stock going into earnings - I guess investors know largely what to expect from the company given the deep financial troubles. So clearly nobody is looking for huge upside or even a profit. In fact a somewhat better than expected outlook or at least some positive commentary with regards to the resolution of the bond and overall debt issues.
even a huge miss and guide down wouldn't do much to the stock price as investors are looking less at the current business (which is insufficient anyway to support the giant debt load) rather than for an amicable solution of these debt issues going forward.
so risk / reward looks clearly better on the long side here going into earnings
that said I am not convinced that shareholders will indeed get a good deal regarding the debt issues going forward. Would still expect them to end up just like Suntech investors.
there was no analysis in the article - it was all about pump and dump - the author picked a very illiquid stock with a recent history of positive earnings surprises and put a blatant article out touting his success with two former recommendations despite very well knowing that Q3 has been a weak quarter for the company historically. I bet he sold into they giant hype and perhaps even went short the stock (if he was able to borrow shares).
watch this to open around $3.50 and to close below $3 tomorrow - analysts won't be too happy looking like dorks here after having just recently initiated coverage of the company.