ACAD is a speculative stock. They are losing more money every quarter, and has a four billion dollar market cap without any earnings. The stock price is being pumped up based on one drug coming to market in the future.
The stock has run up quite a bit, and I would not be surprised if we saw a sell the news picture here…
There is a lot to like in AWR as a long term investment. They have a long track record of increasing earnings, and steady EPS reports. I expect the stock to hover around $40 for some time. But, over the long haul (5-10 years) I expect AWR to outperform the indexes by a good margin.
They will have the ability to increase rates (no utility ever goes down) in the future and grow their business at a gradual but steady pace. The firm has a market cap of $1.5 billion and I would expect that to increase in the future.
Yes, all the bad news is priced in to this stock. KORS fell out of favor with fund managers as the management team sold too much stock.
If the management team does not want to own the stock then why should you or fund managers?
The dollar continues to weaken. Although, Europe is in a real funk.
These times are when management really earns their money.
This is likely to be a challenging quarter for RPM.
I agree that these stocks are getting way too frothy. The only thing I can think of is that water is the new oil? A multiple of 27 for a utility stock is crazy...
The ECB bond buying program will help stabilize Europe. The dollar has been weakening since the last RPM report. My price target for RPM in 2015 is $55, and I think they do that pretty easily….
Anyone with a longer term time frame will just buy and hold. The weakness today provides a good buy opportunity for longer term holders.
The more KORS earns the further their stock declines. It has been one strange stock since their IPO….
A struggling Europe and stronger dollar certainly provides some headwinds for RPM in 2015. I trust management took into account the worst case scenarios in guiding down for fiscal 2015 and 2016.
Everyone has their own time horizon and financial goals. I would just like to reap 10% stock appreciation and reinvest dividends for the next 10 years or more. Therefore, buying the stock at $45 yesterday, then all the stock needs to do is trade up to $50 in 2015, and I will be satisfied.
I believe with the asbestos lawsuit behind them, and with lower oil prices, the management team will be able to navigate the headwinds of Europe and a stronger dollar. I could be wrong and the stock could tank this year. But, this company has a long track record, and an excellent balance sheet.