EJ current market cap is more than 20% below its ownership value in LEJU alone. If funds accept the current deal they might as well wear signs around their necks saying "I'm a #$%$". The offer should be at least $1.225 plus some kind of premium.
But if he was too conservative, LOCO could be setting up for a significant beat on the next report. Hopefully, all the bad news is out. Look at AAL (different industry) today. The stock has been beaten down, had some negative comments this morning and was down about a buck, and is now up for the day. Hopefully all the bad news is already out there.
EJ is worth about 10% more solely based on their stake in LEJU. If we were in a fair system (joke) this offer would be turned down because it is too low. If it is accepted, no doubt corruption is present. Come on--make a fair offer!
I'm not seeing any news, but already done average daily volume in about 20 minutes. Did someone big just realize how out of whack the valuation is?
Amazing how sloppily the government acted (well, maybe its not) with confidential information. They definitely need help.
If that happens we will see a parabolic move. Unfortunately, I sold most of my FEYE but still enjoying the ride for my remaining position. I think the analysts are going to have to rethink their price targets and comments.
I'm wondering the same. CYBR up nearly 7% (wish I owned more) but FEYE up around 3%. Could be someone big is accumulating and getting some help with price while they do so. Or could be FEYE is setting up for a pullback. Hard to imagine much downside though with the VISA deal and the hacking.
conservative in their view of the future. The frequency and massive size of hacks in the last few months suggests to me that the sector will only grow faster than projected. The entire sector should do well tomorrow.
I agree. I added at around $21 because I don't see much downside, but do see significant upside potential. If we can get to $25ish I will sell my recently bought trading shares and hold the rest longer term.
happy--The shorts are definitely a problem. I might be early and so far have not added as planned. I do believe with a weak global economy we will see a pullback in oil, but that may or may not immediately translate into a higher price for AAL. Over time I think it will.
The upside of that is when you like a company you can buy the stock and sell covered calls a couple months out (post earnings) and get a very nice premium. If you get a pullback, it definitely helps to reduce your cost basis. Of course, you can also just sell naked puts, but not all accounts allow this. I bought in the low $70's and sold the calls expiring tomorrow for over $3. I see the stock is up sharply A/H so should work out this time.
You also said this..."expect 155 premarket tomorrow...till it opens at 150
seen this scam many times recently"
Right there with you. Sold most of my FEYE recently and would like to reload on a pullback. This morning is a reminder of how what appears to be a sure thing often isn't, as well as how a bad market can knock everything down. I guess not everyone is ready to celebrate Cramer's rationale about losing money being a good thing.
Graderist--We all feel your pain. I recently bought LOCO around $25, watched a quick run to $29 approaching earnings (I usually sell going into earnings if I get a nice profit before) and foolishly decided to hold. Now looking at a stock down over 20%. Yesterday I sold my PANW for a nice gain, raising cash for our next buying opportunities, and think there is still a good chance PANW keeps going on to new highs daily.
Wishing I had more. Traded out of most of my stock, but still enjoy any ride we get. If this move holds up, it brings much more attention to the stock and the company. There is pressure on funds to own cybersecurity companies, and it seems an obvious need for a portfolio in this environment. And they are going to have to pay up. Supply and demand are likely to override the worries about this sector being pricey for awhile.
Good chance to see mid $40s in the next few days.
I saw part of it and thought it seemed odd the way he went out of his way to say how wonderful things now are in the airline business, and how great it was that now the competition of yesteryear was gone. It was as if he created the appearance of a rosy business environment so that the specter of future competition would be all the more dramatic. And this all on the heels of several rosy articles about how the airlines look like a great place to be investing now, with LUV and AAL at the top of the list. I may be off base to include the writers of these articles as part of the set up, but then let's remember writers are paid to write their pieces. We usually don't get to know what the agenda is when they write an investment article, but I have to wonder.
The stock may get a little cheaper for two reasons. First, no one wants to catch a falling knife, so as buyers step aside it is very easy for the stock to be taken lower on even moderate selling. Second, it seems likely we will have at least some type of correction in the near future as the market takes a breather. I think the stock is cheap here, but am waiting for it to get cheaper before adding (soon).