especially the guys form Pacific Crest and Deutsche Bank seemed really #$%$ off. Would expect all of these analysts to downgrade the stock tomorrow. And perhaps some might even lower their rating to "sell".
Even with the stock down 30% in after hours this is still a great chance to sell or better sell short as this will be down at least 50% tomorrow morning after the angry analyst commentary has come out.
I am no chart guy but I would expect that it needs to settle significantly below the price point it traded before the article came out as the weak earnings would have been a disappointment to investors in any case. But the fall from grace might become even more pronounced as there are so many opele now trapped in the stock due to the blatant article.
analysts are clearly puzzled on the call
I would guess that it will see the $3 tomorrow - will go down more than 50%, perhaps 70%
this leaves product revenues just above $20 mln for next quarter even weaker than Q3 and simpy unbelievable
errr - no.
there's no analyst coverage of the stock (and won't be going forward) so upgradescan't happen as there are no ratings currently.
and for the short squeeze...the stock is quite difficult to borrow so the influence of shortsellers on the share price might be close to zero. The intense selling pressure is actually due to retail investors like you and trapped momentum traders who are looking to finally exit the stock after being lured in by a blatant seekingalpha article
can't believe you are still in the game after ten years when acting like this...
the stock closed at the lows with heavy selling pressure all the day and for very good reasons (stock doubled on a pump and dump article on seekingalpha and is still 25% higher than before the article despite disappointing results).
retail investors and momentum traders are trapped in this stock and many of them can't or are not willing to hold the stock over the weekend. So this will see another distribution day tomorrow and perhaps another one on Monday until the volume starts to dry out - which won't make things better for longs.
investors would still be better off to finally sell here and look for a better company to invest - this will be in the low $3 before the Q4 report three months from now.
By the way:
Perhaps you would like to take a look at VMEM after hours - I guess you might think this looks cheap but it will me down more than 50% tomorrow.
the ambulance chaser are lining up already for their class action lawsuits - company manages to even miss the generous analyst consensus for their first public quarter which is close to impossible as analysts are heavily lowballing their initial estimates.
looking at Q4 guidance things become an absolute and completely unbelievable mess as the company will miss analyst estimates by more than 25%.
this will go down by 50% or even more tomorrow as IPO buyers will head for the exits
Don't know how to value the company based on this mess as cash burn remains quite high. Sell.
it all comes down to guidance during the conference call - reading between the lines management commentary doesn't sound like they are overly optimistic for Q4. Cash flows VERY weak also. Analysts will ask about that. Will wait for the call but if forced to take a position it would be on the short side here
just too many retail investors and even some momentum traders are trapped within this stock and many of them are still betting on a rebound (which might very well come next week but won't hold for long anyway).
remember the stock was significantly below $4 when the seekingalpha pumper published his blatant article and has been in slow accumulation mode in the days and weeks before (perhaps the pumper and his friends loaded up).
remember also that investors anticipated a further qoq improvement and in no case a 30% revenue decline.
so this will go back the whole way and then some more I would expect - will revisit the stock around $3 going into Q4 earnings I guess.
their auditors resigned in 2012 for undisclosed reasons and the year end results were delayed. Nasdaq halted the stock in May 2012 for a long time.
don't make me laugh - why should anyone assign a pe of 11 to a former Chinese fraudster with gross margins below 10% - they will have to show much better and consistent results going forward to get back to recent highs.
lol lol - just better listen to me I guess - but of course I couldn't care less about your losses
covered $4.60 - might still go below $4 today but won't get too greedy here
finally found some shares to short this morning
actually I have great confidence in my predictions so let's meet again here tomorrow and have a look at your losses.
even without the seekingalpha hype the stock would have been down on the disappointing revenue number (down 30% qoq). Cash flow was also negative $5 million so this would have gone from $3.80 to perhaps $3. Now it will end up around $4 tomorrow which still doesn't look too bad given what would have happpened if the sa pumper wouldn't have shown up.