You never like having to talk about a quarterly loss on on a CC, I guess that's why the CEO bolted when he did and left the new guy holding the bag. Kinda of a nasty thing to do to a new CEO and an unprofessional exit IMO.
Well, soft as expected but was really not expecting a loss. I never really buy that whole timing differences excuse between revenues and costs either. it's like bailing results on the weather. And bottom line there us still just way too much quarter -to-quarter volatility in EPS w/this company. Great quarters followed immediately thereafter w/poor results. Backlog and bookings were both up significantly so i don't think you can call it a "blown quarter", maybe a partially blown quarter. The knee-jerk should be a lower stock price, but we will have to see where it settled out at the end of trading tomorrow. This is exactly why traders do not hold positions in micro caps ahead of earnings i suppose as you said. Mixed report.
janus, that is exactly what has everyone worried I think. The company has already said the quarter would be the softest of the year and by association, much softer than the blowout June quarter on a sequential basis. So that is already out there and in the market. What is not in the market is the CEO leaving w/ no prior disclosure to shareholders that was in the works, and leaving right before the quarterly results are to be released and discussed. So the bottom line is ,yes the quarterly results will be soft ,as they co. has advertised, but just how soft is unknown. And why didn't CEO hang around to discuss them on the heels of dropping half his stock position? It just doesn't smell good, but again it's only a short term worry to my mind. Obviously investors are now spooked after a great run higher.
Very true creed, it has been a great year for the stock. That said, if I were a trader, I would not be long going into the close. It is not a good sign that the former CEO has left just before these quarterly results, and just before a presumed ramp up in Helix. Having come this far ,and being this close ,it is hard to understand why he would not want to see the fruits of the labor come to fruition and bask in the glory. It's just a weird time to retire versus waiting only a little longer and leaving on a high note. JMO. I think the dip continues w/the EPS report, then stabilizes until Helix actually starts hitting quarterly numbers in a significant way, and then resumes the uptrend. I should be a good latter half of calendar 2014.
I suppose it's the difference in actually being able to make, print or manufacture something in 3D, versus just being able to measure it (Metrology). Some stocks you ride like a rocket all the way up only to ride them all the way back down. With PRCP you probably ride it about half way back down, stabilize and then resume the upward trend. Helix will produce real earnings, but you don't really "make" anything with it. That's the difference. It's just a measurement tool, but a very good measurement tool. It deserves an "above-market" multiple but not a 40 or 50X multiple on earnings.
The stock is down over $2 per share in just the last seven trading sessions. That tells you the September quarterly report tonight could well be another boom/bust cycle coming off the strong June quarterly numbers. They have a history of reporting a strong upside surprise by borrowing from the next quarter's shipments and then leveling out and reporting a disappointing quarter the following quarter. The preferred buy/add range for the stock is $10.75-$11.00 which equates to about a 25-30% discount from the high ten-day days ago, and is allowing for a very weak number after the close. Long term it's just a wiggle and won't even matter a year from now. Near term a $4 per share drop from $14.75 to $10.75 in such a short period is quite painful but would shake out the weak holders.
do not think 2nd Helix order will help sales this (Sep.) quarter. May be in backlog and bookings but will not help the P&L until future quarters is my guess.
Yeah, but I do not think it would drop much below $11 per share on a soft quarter. I mean everyone knows this company has a history of a blow-out quarter followed by a blow-up quarter, and they have already put everyone on notice it will be soft. It will not fill the gap in the high $8s like some expect.
got a lingering concern over how strong the last quarter (ended June 2013) was, and just how much it borrowed from this quarter w/ that big order that hit late in June. Just want to get the EPS report out of the way after the close Wednesday and move forward, hopefully with some positive guidance. Soft quarter and CEO stepping down just has me a bit nervous for the near term
hope you are right, but the stock is saying otherwise--selling off every single day ahead of earnings. they are probably going to be soft.
yes it looks that way. Last quarter (ended June 30) borrowed strength from this quarter w/ a big order received and booked in late June that was expected to hit the September quarter. Some people selling ahead of EPS release which is expected to be weak, and looking to buy back after the numbers are announced at a lower price. Pretty big near 10% pullback in three days and still 4 days left before EPS announcement. That's an eternity to wait-- could be a swing of a couple bucks per share both before and after earnings. If you don't like volatility this is not the stock for you. Many investment pros saying 2008 was the real estate bubble and 2013 is the stock market bubble waiting to be popped after a furious liquidity injection by Fed banks worldwide that needs to be reversed. They think the speculative froth is just beginning to be worked off. I think this company bucks that trend , but it would be hard to run against a serious market pullback I suppose. It is indeed the most speculative part of the market that has been selling off the hardest (Nasdaq and small cap year-to-date gainers).