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 ?
A shame you don't know it as an investor in PERI. Peer AVG reported weak results and lowered forward expectations due to ongoing weak business trends.
the stock is down because of disappointing gross margin guidance and a short sighted acquisition move which repeats the mistakes many gaming companies have done in the past.
given very high investor expectations the sell off is the logical consequence. Would expect shares to test $5 given the upcoming rise in operating expenses and higher inherent risk in the business model.
Revenues were below expectations and the company had to lower expectations going forward. Current business model doesn't work too well anymore. Would sell the shares.
who cares about the Yahoo estimates - investor expectations were for MUCH higher earnings given the ongoing strong ethanol pricing environment and ever decreasing input costs. So it is hard to understand why COGS were actually up substantially in the quarter while margins and EBITDA came in much lower than in Q1 despite MUCH higher revenues.
who cares about GAAP numbers - the warrant overhang is almost removed here so why bother when finally an end is in sight ?
you should better ask about the HIGHLY disappointing earnings which can be attributed to MUCH higher than estimated costs of goods sold. Gross profit and EBITDA came in both MUCH lower than in the second quarter. Would expect the shares to move down at least 15% initially before the conference call starts and I don't think management will have much to say to keep the shares from cratering.
just because things don't move like you would expect them to move this does not mean that there's some kind of conspiracy going on. You just don't get the reasons behind the moves (despite I explained them to you in this case).
Everytime people fail to understand complex situations and events they are looking at higher powers at work. This has been wrong in the middle ages and is even more wrong today.
Get educated and stop blaming non-existing conspiracies.
there's nothing wrong with the company but THIS was a BAD move - selling almost half of the YieldCo for close to nothing. They could have taken in 5x that amount by ipo-ing the stake.
The market expected much more given the recent strength in the company's shares. It is not enough to issue pretty mixed guidance on the call. For another leg higher gross margin guidance needed to be much better. So people are taking their well deserved gains here. I re-shorted the shares in pre-market and looking for $22 today
for sure - but this still should happen but of course JKS will be diluted further beyond their currently remaining 55% ownership. Frankly this was a BAD move compared to what SunEdison managed to create in additional value for their shareholders. I am certainly disappointed. Given all these YieldCo craze in the market (just look at the Terraform Power nonsense hype) the company should have been able to get at least one billion for the 45% stake - if not much more.
why should anyone buy the company ? Their sales in the all important US market are BELOW $50 mln per quarter with the company under heavy pressure there. Any of the above mentioned companies would be better off to stay away from this business or better build its own from scratch. Sell.
no - rest of world especially EMEA looks pretty good but the US is indeed a disaster. Guidance lowered far below estimates and the US business won't turnaround anytime soon if it all. Company is lowering investments to remain profitable which looks pretty shortsighted given the problems in the US business. Debt more than doubled while cash went down further. Company is now in a net debt position and might require a capital raise going forward. SELL.
certainly a HUGE disappointment given the Terraform Power crazyness. YieldCo valuation will rise once additional capital is raised via the proposed public offering.
Ok - product revenues will come in at the lower end of expectations. That's usually not what gives a stock a boost. And Germany refused to clear Juxtapid at first try.
already elevated inventory levels to move even higher in Q3 - analysts are increasingly scratching their heads on the call