Pert beat me to the first post - I actually looked in for several days after the board got loaded onto Yahoo and wondered if anyone was even around - looks like there was!
I've been a believer in FPRX since day one, and I think this one has great long-term potential. I love the space they are playing in and I think management is top-notch. The first earnings call was very entertaining and I appreciated the long-term vision they shared in terms of financing and business development.
I've been a buyer since the IPO and while those shares are still in the red, the balance of the shares I bought all the way down to $8.25 have more than made up for it. I look for this to get back to IPO levels prior to the next call, and then I would love to see it slowly make a move towards $20 over the course of the next year assuming continued strong business development and money management.
The light volume makes it hard to peg this one definitively, but clearly its developing an upward, sustained bias after the initial sell down to $8 - glad to see WF backing the stock and look for others to come in as the share price holds over $10 and volume slowly begins to pick-up.
Good luck to all!
I appreciate the perspective you are bringing, but I don't agree with it in this instance. I agree that the multiple of 50X was a bit rich, but I don't see any way in which FIVE drops to the teens let alone the 20s. Is there a chance it drops into the high 30s? Sure, there's a chance of the high 30s, but that was also why I didn't buy a full position, yet. The growth story of FIVE is still alive and well imho. I think this is a classic case of the market getting a bit ahead of itself, and the stock will need to correct for that. That said, you've got a business (discount retail) that appeals to a huge and in demand market (teens) and is growing rapidly. There is a lot to like about the potential of any business playing in either space - let alone one that combines both.
In the end, for me, it came down to the fact that the 'miss' was not a miss on Five mgmt's own numbers like the one ULTA suffered yesterday. This was a miss against the market's numbers. FIVE management delivered against their own targets and they were able to raise their full year targets. The 'miss' in both cases was $1MM in rev in the current quarter and a $.01/shr in earnings and $1MM in forecast for the future quarter. BTW, the company actually exceeded earnings $.05 vs. $04 est on the $1MM less in earnings, which in my simple mind says they are are running leaner than expected, achieveing better margins than anticipated or not dilluting the stock with additional shares - as a shareholder I like the story regardless of the path taken to get there.
I see the $8-$10 haircut the market is giving FIVE based on the $.01 miss as lowering the multiple from 50 to 40 and all of it based on $.01 in earnings. So, basically if someone liked FIVE at $50 and believed in the stoy, then today they get a 20% discount on the stock for a 1% 'miss' on earnings. Not a bad deal if you ask me. Hence - the reason I pulled the trigger.
Had FIVE mgmt missed their own numbers, then I would be in a different camp...
I am a long time watcher, but first time investor in FIVE. I've been waiting for a pull back, and while I was hoping for something to happen with earnings I would never have guessed this would be the outcome. Regardless, I finally pulled the trigger afterhours and picked up a small stake (200 shares) at $40.70. I read and re-read the earnings release and while I understand that there was a miss I certainly didn't feel it warranted the type of sell-off we are seeing. Here's hoping this settles around $45 tomorrow and then as the panic goes away it slowly trends back up to $50.