The guy hasn't kept a single campaign promise YET. Do you really think he would keep the promise to clean up Wall Street?
The market is strongly favoring those that have strong earnings breakouts. This is a nice time for SCMP to be having a major uptick in EPS.
Standard momentum plays where big money is running up Microsoft, Amazon, Google, and others, and will quickly rotate into Biotech before their earnings are posted. May see $65 then rocket to $70 pre earnings, $70+ post earnings.
I'm expecting the earnings news to be good on May 6 (before market) with them beating the street estimate of 0.12/share EPS and $30.19M in revenues.
My estimate is that they come in at $0.14/share and $31.8M in revenues. This should put the stock value above $30/share considering the NET present value. Higher if we look at forward earnings growth.
You never know when you will get lucky. Several times I've turned $10K into $1M+ in the stock market, so it can happen. Several times I lost most of it back, a few times I kept it - so far from perfect, but hey, we get lucky every once in a while.
Each persons needs are unique, so it will be dependent on that person's situation. Meaning, if the person only had a useless Bachelor's Degree (say History) and wanted to upgrade to Finance, Computer Science, or Marketing, or something more marketable, then they could go that route. Still, $100K is way more than needed for a Master's degree.
I would definitely NOT buy a coffee shop or local business unless I knew that market intimately and it was something I loved to do. Few of those make much money.
I still (personally) believe that the stock market holds the most promise for the future as it gets your money working for you better than anything else. That said, caution is always in order because the market is at lofty levels, so I'd probably only put half in the market directly and safe the other half for dips or pullbacks. With respect to earnings, the market isn't over valued, but perceptions are that it is fully priced. So choose carefully. On a pullback of 10% or more, I'd put another 1/4 in and save the final 1/4 for another pullback. In this way I'd put that money to good work while managing my risk.
That's what I would do.
Despite the wishful thinking of some, SCMP isn't overbought by any of the technical indicators.
MACD & Stochastics both are channeling at mid-levels indicating not overbought nor oversold. Resistance has cleared out and here are 11-support points below he current price, again indicating the stock will press higher and no sign whatsoever of being overbought.
Actually, very few brokerages extend margin on SCMP. The highest I've seen is 70% (so you can only margin 30%). So unlikely to change anything.
This dip just makes it cheaper without affecting the valuation. None of the fundamentals have changed.
All that has changed is that other people own 4M of the shares. Hopefully this will give shareholders more stability because if it is across 50 people, they aren't all going to dump at once.
All in all though, nothing has changed about this company. EPS is still the same. This isn't a dilutive offering, they didn't invent new shares, they just sold some of what they had while maintaining a large amount of shares.
Wow, don't fight the Cramer. He says to sell ISIS and everybody does. #$%$? A bunch of mindless minions. ISIS story, fundamentals, prospects are all still in tact.
I wonder how much of a pullback before Cramer is back on the ISIS bandwagon?
Give him credit for telling people to take some profit$ off the table. That was the reason for the drop on Friday. Next week should channel, then back up.
Of course he is still talking up ISIS because they still have the richest pipeline in the business. Nothing has changed. The long term picture is exactly the same, so why do you think he would change?
Here's a hint, he is likely to be talking up ISIS for the next FIVE YEARS as it rises from $70/share to $700/share.
With the institutional ownership so high, it stands to reason that if all the smart money is long, only the stupid people are short/against it. This is why the institutions make so much money. Watch them ride this to $500/share.
$2.74 EPS and a growth rate of 75%-85% would put shave valuations around $205.50/share, but let's go with a more conservative P/E ratio of 50 and we get a very conservative present value of $137/share.
Even projecting forward for 2015-2016 with EPS of $3.84 and a growth rate of 40% yields a valuation of $153.60/share.