There was a very nice article on the expansion of wireless toothbrush technology this morning. There was also a 400 share sale that dropped the stock 20% at 12:49 today? What the heck is that all about?
Sentiment: Strong Buy
Thank you both. I appreciate Hopeful200's perspective which I think is wise and I appreciate the effort jal_1961 did to research the co. My perspective based upon ABHI's business model is they're a niche but they have visionaries and more importantly their visionaries are doers. Simply owning a part of a growing company of people that are learning how to produce product is worth the speculation at this price and that their visions are part of the birth of the latest "big thing" makes it almost irresistible at this price. They don't even need profit, just sales at this point.
I think you nailed the pull-back with the secondary offering of 70 million shares but don't forget that Zuck sold 48 million or so to pay his tax bill and that looks to me like there were suddenly ~118 million new shares added to the market. With a 1.6 billion share float that 118 million share addition instantly added about 7+% more shares to the market and that's just the beginning because I believe there are others in the same situation though maybe not as extreme. This will be interesting next week.
Comparatively there is very little "investing" these days, the latest statistic I heard is that 80% of the trades are from Traders not investors. The Traders are very difficult and even impossible to beat, all one can do is hope to go the same direction as the 80% to get a couple Peso's and hope they didn't notice or they'll take it back.
While you have a point about being the victim of an international crime i didn't say anything about compensation. I don't agree that the management team is despicable and incompetent, I think they're very talented in many aspects but underestimated the IT needs and that is a big no-no, particularly in a retail environment. The executive's job is to be creative and innovative in growing the business but it is also important to put a moat around the existing customers, services and processes, re: Ron Johnson at JCP. In the case of this data breach it looks like someone didn't take the credit card and debit card security as serious as they should have and in that case shorting the stock is an important strategy since it appears to be going down - though not necessarily today. Why are you so determined that only the big traders are allowed to make money when the stock drops and not the average person?
Huh? When a big business executive whom doesn't have to worry about their personal survival needs makes business decisions that destroy the business or even worse send customers to the competitor do you not think they should be held accountable? Shorting stocks where the executives running the business make penny wise pound foolish decisions is smart and necessary. In this case while we don't know the explicit cause of the problem at this time we know that there was a leap in the number of people shopping online and we also know that once a customer gets comfortable shopping online they tend to stay there.
In your particular case, I'm not sure why you would jump to a conclusion about somebody for using a legitimate trading strategy.
Everything seems uncharacteristically quiet on the corporate front.
Yeah, imagine trying to earn money from a company that has a bunch of corporate executives who believe the mantra that it's a good thing to pay employees (IT in particular) less and give the shareholders more. Leave it to a leading retailer to make online shopping look more secure than going out and buying it, maybe it's time to invest in UPS and FedEx with their sudden spike in volume. Perhaps the most surprising thing about the whole debacle is that it wasn't Lampert over at Sears that created the situation.