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)