As I thought last night. Shorts have driven this below fair value this year. Now all the bad news is out, there is no downside left. Shorts are covering their positions. Shorts have made money on VRA this year, but that is over now.
Gawd. Are you serious? Firms are constantly making Upgrades/Downgrades before earnings AND are often wrong. Those "firms" have ulterior motives.
He is the CEO. He should do better. He is sounding very defensive, whining about the press coverage. Come on...the bloom is off the rose with Mush. the honeymoon is over.
I think there were a lot of buyers on the way down. With the pop this morning they were able to get rid of their shares at a smaller loss than yesterday.
Lots of shares out there to go through. This will improve over the next several days.
Five just surged near 49! Wow. Totally short covering. Looks like that was the blow off top though. It should recede to more reasonable levels over the next couple of days.
Verionic, listen to the CC. 2014 is not going to be good. (not horrible either) They are looking to the end of 2014 and then 2015 for decent improvement. The turn around keeps getting further and further out.
So far I would have to say only Home Depot and Costco. I don't know anyone that is going to replace their current light bulbs with bulbs that cost $15-20 each!! People are going to wait until the price comes down. So what does that mean:
1) inventory sits in HD
2) HD will be ordering less in upcoming quarters
3) CREE will have to come down on price which will impact margins
I have LED lights in 4 fixtures at home. I love them! But with about 30-40 more bulbs to replace, I am not going to swap out anymore until the price drops by at least 70-75% from current levels.
Revenue forecast for next qtr either missed or is even, depending on your take. However, it doesn't matter. RKUS trades at a lofty price for its PE, and future growth does not support the current stock price. I doubt this will drop to $10, but that wouldn't even bring this in line with a decent PE.
Not a bad year, up to now. But its high valuation will come to roost tomorrow after earning do not show much expected improvement. Under $30 for sure tomorrow.
Sentiment: Strong Sell
Not sure why there is excitement here. Shorted AH. Not a compelling story. Forecast is disappointing and provides no reason for RKUS to support its high PE.
It seems to me that all this action started with a large trade at $1. The first 10 minutes of trading had a small amount of shares traded. then when it hit $1, over 100,000 shares were traded. The spiral continued from there.
Without any news, this just seems to me to be triggered stops executing sell orders.
Panic Mongers have created a great entry point. thank you!
Sentiment: Strong Buy
Sterne Agee moved the price target to $4.50 from $6.00 with a neutral rating. J.P. Morgan downgraded the rating to neutral from overweight and lowered the price target to $5.50 from $9.00.
I am always intrigued when a stock drops far below new price targets. VMEM for example in pre-market is now 30-40% below these already reduced price targets. It would seem to be a buying opp in pre market.