sure - but this doesn't matter to investors today - the stock will get sold heavily today. The company has consistently outperformed expectations by a huge margin in the recent past so this miss will weigh heavily on the shares and the group as a whole today.
Given the currency fluctuations the company should be able to employ efficient hedging strategies but clearly this hasn't been the case so far.
So there WILL be pressure today - I would expect the shares to give up 15 to 20% easily this morning and perhaps testing support at the $20 level this week. That's exactly where I will buy the stock.
the shares will be down today and maybe for some more days. I will happily take the gift in the low 20s here. Jinko has industry leading gross margins and the miss seems solely related to the timing of high-margin project revenue recognition. One of the best balance sheets in the industry. The shares are a screaming buy. But not this week.
I guess most institutional shareholders are giving up on the company here - a huge management misstep, rich valuation and competitive pressures should move this to new 52-week-lows in no time
actually Orr just took a huge misstep by understimating the budget market and there were further hick-ups in the not so distant past, too. Wouldn't bet on the guy.
the shares will only move lower from here - competitive concerns are the worst what could happen to a richly valued tech stock. There's immediate downside to $15 next week
nailed it - another great call and another huge gain
that's what management said. But that's wrong. And they know it.
Essentially the message from yesterday's conference call was:
"Cisco has a highly competitive product in the lower end of the market, while we don't" - in order to get at least some of the market share we decided to ship high end products for lower prices.
While certainly nice for their new budget customers, existing enterprise customers won't be too happy having been charged much higher prices for the same product. And obviously it doesn't speak for the quality of the management that they had no budget product ready (and they still don't have) when the market demand showed up.
I don't think their margins will recover going forward as the company faces both pressure from CSCO and existing enterprise customers going forward.
Stock looks highly overvalued at $2 bln market cap
Would expect the shares to be down 15-20% easily
analysts on the call didn't buy this - competing on the low end using high end products clearly isn't a smart move and at least killed the margin for now. What do enterprise customers think when they find out about Aruba selling the same products at a much lower price tag to "value customers" ?
company seems to experience heavy margin pressure as gross margins came in well below analyst estimates. Management better has some good answers and even better guidance on the call otherwise the shares will be down 20% tomorrow
who cares about the cash position as there is no way this can be returned to US shareholders - most likely it will be used to further bribe agents for some short lived customer acquisitions. Watch the marketing costs in the next report further explode an decide if the business model makes any sense. Wouldn't wonder if the agents are related party accounts by the way further extracting money from the company
while I was clearly wrong yesterday this time things look pretty clear this time - the company will announce an equity offering shortly
ok - Wells Fargo out with very positive commentary. But still it is hard to imagine that value investors will stay with the stock today given the dividend elimination
stock should be down substantially today given that the company needed to eliminate the dividend in order to stem the overbuild costs. A seemingly save 11% yield has been wiped out all of a sudden.