The only numbers that really matter to analysts are the investment banking business numbers. Set the bar low, beat the expectations, do some banking business, we get millions in fees. This company's market cap is almost $17B for their $500M in revenue. They're losing money, way overvalued, and this is just like 1999.
Who will pay the higher price for this stock when we're probably heading for the first market correction in over 4 years?
It's not different this time, everyone thinks it is.....It's still a money losing story stock. An analyst sets an easily attainable top and bottom line model, they beat the estimates, and the stock goes up, and the analyst's get their investment banking business.....C'mon, you know how the game is played.
This looks like 1999 all over again. Story stocks.....lots of promise.....beat "expectations".....who cares about valuation?
SPLK has big time resistance ahead to get there, unless they surprise on their ER release later this week.
And you can have me on suicide watch Chicky. I was long BITA from about $56-$58 and then sold, because I was worried about the valuation, geopolitics, China slowdown, etc. Now, any Asian (or American, for that matter) with internet access and a few bucks is trying to drive that stock higher. Insane....
All the biotechs I follow are running like crazy.....Where's Janet? Oh, that's right, there's no bubble in this market. Companies don't need to make money...when the momentum players get a hold of a stock, the casino mentality takes over.
Sure, keep buying at the top so I can sell at this level. Are you familiar with Fibonacci retracements? If you're not, you'll be finding out soon.
And here's something of interest.....The VIX is UP today, along with the leveraged VIX plays, so maybe a little fear is creeping in.....
and they're doing a good job. As I'm long (and mostly medical and energy), my biggest fear is that when the momentum stocks get crushed again (and they will), they drag everything else down with them.
The CEO is not obligated to tell shareholders why he buys or sells stock, and with this company as I've stated it's not an issue.
On another note, the stock is breaking out on heavy volume, and I expect energy to lead the market going forward from here. FANG at this point is either in play by a major (very possible), or the street is realizing the huge growth and undervalued asset, as the analysts have been saying for months.
INSY could be trading over $50 in two weeks or so. While analysts and others have been gushing over the prospects for GWPH's cannabis potential, INSY has quietly been executing their strategy and getting partnerships. Oh, and INSY is already very profitable and growing, unlike GWPH. INSY may be one of the best biotechs out there that most have not heard of yet.
Indeed the market game is certainly rigged by the analysts. As everyone here said, there was no reason for GS or others to downgrade the stock, other than the fact they wanted their clients in the stock at lower prices ahead of the acquisition. The manipulation never changes, it only gets worse.
This is why you can NEVER trust analysts.......
That's minutia, and an insignificant reason to buy or sell a stock. The CEO earns a salary of over $2.2 Million a year. He's paid well, and has a huge incentive to keep his job....to that end, his execution has been stellar for the company, and for shareholders. The most important aspect of FANG's stock is price appreciation. But if you want to talk about insider ownership, insiders still own almost 20% of the outstanding stock.
If you're short this stock you're insane.....If you're long, don't worry about the minutia, worry about the company's performance.....there's no worries at all in that regard.
The way this stock is acting, honestly I wouldn't be surprised to see it acquired by someone next week.
The whole thing is nothing more than a self-fulfilling prophecy. Can you imagine what the market would do if Yellen said "this stock market move is not justified considering the slow recovery, and lack of sustained revenue growth?" The market knows she'll say nothing to upset them, and then when that happens, it goes up anyway as a self-fulfilling prophecy. From there the financial media takes over with their complete nonsense.
Nothing new, she's afraid to commit either way with the markets at all time highs. She even dropped the small cap social media bubble talk. They play good cop bad cop. Yellen makes her speech, and then CNBC lets the other Fed governors appear as guests to do their damage control spin. I'm sick of all of them.