this is just a lie as
1) non-gaap earnings indeed missed estimates by a mile
2) revenue forecast is way below current estimates
3) every single relevant business metric came in weaker than in Q1
I would expect a couple of downgrades tomorrow morning and the stock to be down closer to 30%
GMCR ordered when the price came back down of course so they are already restocked again at this point and can wait until prices move lower again. And JVA has no cheap inventory to sell to them anyway.
Last quarter they failed to sell at market prices as their position within the market is just too weak. Actually the company has failed on almost anything during the last few years.
they have proven many times that they are unable to capitalize on the huge market opportunity while market leaders like SCTY and SPWR have problems to keep up with demand.
why in the world should the share price go up ? The times of selling cheap inventory are already over at JVA - they will have to pay high purchase prices again and might not even have the pricing power to pass the whole costs to their customers.
Management explained this in detail on the conference call - just listen to the replay of today's call - while financing clearly is not a problem the deal looks ill-fated as it was seemingly put together head over heels in light of the recent IGT takeout. Analysts on the call especially doubted the forecasted cost synergies and asked about potential FTC issues. Overall the deal recption was pretty lukewarm. Even worse management outright rejected to talk about the agreed breakup fee on the call and hinted to an upcoming SEC filing instead which won't be filed immediately.
Bally shareholders should take their money and RUN fast as there's a high probability of the deal to fall through as already evidenced by today's trading action. Would outright short SGMS as they will be pressured by a seemingly very high breakup fee.
should end up close to unchanged
this will be rather $20 than $30 as the current market weakness will take its toll from a stock like this. High valuation coupled with huge losses makes the shares an ideal short.
no - not at all. Last quarter they had to sell below market prices to sell at least anything - starting this quarter they will have to BUY at market prices which makes things even worse for JVA. They will report a horrible quarter.
covered here $8.87 for a more than $15k gain within two hours - won't get too greedy here
another great call
SGMS would end up completely overleveraged - I don't think that analysts will keep their thumbs up here
Again - I do not think the deal to be finished after today's reaction in SGMS stock.
Seemingly a panic deal on the heels of the IGT buyout negotiated within just three weeks with no real due diligence being performed. Investors should take profits here.
stock already down $1 from pre-market highs - would expect the shares to eventually turn negative today and the merger to get terminated
It is outright dumb to buy the shares here - the business model doesn't work anymore and the company has serious problems to adopt to a new one. The now all-important subscription business weakened heavily during the last quarter and the search business remains a complete mess. No mobile monetization yet and so far no timetable has been given except for that they don't plan on anything near to medium term. Given that peer PERI will most likely report even weaker numbers next quarter the shares will take another hit. As long as there's no evidence for things to pick up meaningfully the shares should be avoided.
so what was great ? the intention to invest heavily which will weigh on earnings for the next few quarters ? the non-explanation of current margin weakness ? or what else ?