As someone who has been trading for 20 years I encourage you to not trade Q reports, at least not the day before the report. I can guarantee the market will crush you and you won't even know why. I tried trading Q reports for several years and never could accurately guess how the market would respond the next day. I had Q reports that looked horrible but the stock would trade up 20% the next day and reports that looked like the company hit the ball out of the park, only to trade down 10%. If you're going to trade Q reports then wait until after the report and look for moves that don't make any sense, such as the move by FL today. It's very likely this stock will recover in the next week or two, assuming the overall market doesn't crash. Even then, because the stock has gone down on a good report, any losses you might have will be limited. As it stands, if you bought before the report then you have 8% to make up just to break even. Unless you are going into a report with a gain then you are taking a huge, and in my opinion, unnecessary risk. Wait until the dust settles after a report and then trade on knowledge, not hope. Good luck.
3 1/2 hours to the close. A five dollar move seems unlikely. Whoever issued all those puts is getting screwed today. Glad I'm not on the losing end of that trade.
Considering the over 12,000 May 30-35 puts, it's reasonable to think that whoever has the resources to issue that many puts also has the resources to run the price up sufficiently to insure those puts expire worthless. I would be very surprised to see that many puts finish the day in the money. It's possible, but in my experience it doesn't happen often.
...and over 12,000 30-35 put options are in the money. There are some huge losses in that mix. Surprising considering how many options expire worthless. Whoever issued those puts sure didn't see this coming. Of course there is still a day left.
For the patient investor this is a buying opportunity. There is nothing fundamentally wrong with ADNC and all metrics point to a growing company. I think there are two factors driving today's stock move. Piling in by the high speed traders on an initial down trend at the open and panic by the retail investor. I wouldn't be surprised if the stock closed somewhere over 14 today and anyone who bought between 13 and 15 will see a profit over the coming week and for the long term.
Management could certainly do what you suggest but I think the recent Q was more than sufficient to justify a floor of 80 a share. The reasons found by some to sell the stock are weak at best. That being said, I'm sure the stock will halve itself merely because I've said something positive about it. Still, the company is sound and the stock will reflect that at some point.
Given the strong earnings beat and backlog, I would suggest an upward correction is due. LNN has moved down in sympathy with its sector but the company itself should not be priced with its sector. Better days might possibly be ahead.
Personally, I think the stock is oversold and the poor Q priced in. However, from a technical perspective there is no support until 30, which is previous resistance from May through August last year. Right now there is just no catalyst to move the stock higher and a valuation argument can't be made until 30. Everyone is waiting for a lower price, including myself, and sometimes that becomes a self fulfilling prophecy in terms of price movement. If you're already in the stock then I think you will see 40 again in several months but short term you may have to endure more pain.
Goldman Sachs reinstates Francesca's Holdings Corporation (NASDAQ: FRAN) with a Neutral and announces $31.00 PT. (TD Ameritrade news feed 12/11/12 06:04:00)
You're missing the point of the ad, which isn't to sell soda or save the planet, but to be provocative and directly challenge Coke and Pepsi. SODA is attempting to do what Apple did with its 1984 ad. It isn't a simple marketing scheme for a product. Rather, SODA is attempting to insert itself into the public conscience by giving people a reason to reject Coke and Pepsi that goes beyond value, convenience, product quality, ease of use, and taste. With this ad they're turning their product into an emotional purchase and attacking Big Cola's customer base, all at the same time. It's a brilliant strategy that has a chance at success. The alternative, to show happy people standing around a kitchen drinking freshly made drinks that were easily made, would be the safe move that would likely have very little impact on Big Cola's customer base. This ad at least gets people thinking.
Here is the text from the report.
5 THINGS YOU NEED TO KNOW ABOUT
BEACON POWER CORP.
1) The management team running Beacon Power Corp. is
experienced and capable of growing the company
Taking a company public doesn’t guarantee success.
A successful public company must have a management
team with the experience and expertise to create value for
shareholders. They must know how to establish and execute
an economically viable business plan, build the brand and
company image, organize and motivate employees, and do it
in as timely and cost-efficient a manner as possible.
The management team running Beacon Power Corp. is capable
of this. They are solid and have a history of success.
Not only is the team experienced, but they are driven to grow
the company and create shareholder value.
2) Beacon Power Corp. has a relatively low number of
Companies with a low number of shares outstanding are
advantageous because shareholder value has not been diluted.
Also, companies with low outstanding shares are often
more explosive relative to companies with a large number of
shares in the marketplace.
A low number of shares outstanding means a tighter float
and, consequently, a smaller marketplace for a stock. Since
share prices are determined by supply and demand, a sudden
increase in buying will likely overwhelm the number of sellers
and result in an upward price surge.
3) Beacon Power Corp. has the right promotion
Being the world’s greatest company means nothing if no
one knows about it. A company needs to actively undertake
investor relations and publicity campaigns to spread the word
about their product or service.
Doing this not only brings exposure to the company, but it
will inevitably bring in new investors and add liquidity to the
stock – a very good thing.
An illiquid is stock makes it difficult for investors to
enter/exit positions quickly and invariably results in larger
bid/ask spreads. Large bid/ask spreads translates into money
out of your pocket because you aren’t receiving optimal pricing.
Many microcap stocks suffer from a lack of liquidity. However,
with investor relations and publicity programs in-place,
Beacon Power Corp. is actively working to ensure a liquid environment
for its stock.
4) Beacon Power Corp. has a relatively small market capitalization
If you multiply the price of the stock by the total number of
shares outstanding, you get the company’s market capitalization.
Beacon Power Corp. currently has a market capitalization
under $500 million which falls into category of “smallcap”
Smallcap stocks can be volatile. However, the potential
upside is far greater than that of a larger company. That’s because
it is statistically easier for a small company to double or
triple in size compared to a stock with a large market capitalization.
Therefore, the returns on microcap investments such as
Beacon Power Corp. can be staggering.
5) Beacon Power Corp. is still “under the radar” of Wall
A sound strategy for making money in the markets is to
buy a rock-solid company while it is still ‘under the radar” of
Wall Street. By getting in before anyone else knows about the
stock, you position yourself to ride any price appreciation as
other investors discover the company’s potential.
Beacon Power Corp. trades on the NASDAQ but is still not
yet known to the many of Wall Street’s big money players. As
Beacon Power Corp. develops its business and increases
marketing efforts, it could attract a larger following from Wall
Street institutions. And that could send the share price soaring.
I have had an iPhone since December and it is by far the best, most practical and useful computing device I have ever owned. It does everything I ask of it and then some. I even had an issue with syncing soon after I got the phone. I went to the Apple store, explained the issue to them and walked out of the store thirty minutes later with a new phone. I was shocked to say the least. I expected a minimum 1-2 hour wait with a loss of my phone while it was sent in for repairs. I took the new phone and synced it with my computer and everything that was in my old phone was put into the new phone. It was like nothing had ever happened. I could go on with all the things I like about the phone but suffice to say the phone rocks. I also have no ownership in Apple at this time. I hope to be able to put together enough money to buy some in the future.
Every move of BCON since 2000 has been based on pure speculation or short term news. The moves in the stock price have been drastic with no sustainability. Why? Because until there are actual profits or the very real possibiliy of near term income pointing towards future profits no stock will increase in price and stay there. The classic example of this would be bio-tech stocks. They may have a great drug with good results but until they actualy start making money the price of the stock will fluctuate wildly. DNDN is such an example. BCON is at the very beginning of being able to make money and the buyers of this stock know this. Any sustainable move to the upside will see significant up days followed by several sideways days as positive news from the company cycles through. What we don't want to see is a spike up over a few days. That kind of move will only correct back down. The time leading up to November should be very interesting.