The EPS estimates on Yahoo, etc. are proforma before deducting stock compensation and intangible amortization. So they did not miss estimates. Look at the cash flow. Up substantially YoY. Company now has $4 of cash. This is a $40 stock. I'm certain it will be up tomorrow after people read the analyst notes.
Single digit tax rate, and proforma they are saying it's in the 6-7% range. How do they get away with such a low tax rate being based in California? They seem to be using the cash to pay dividends and buy back stock so it's not all stuck abroad.
Revenue flat, net income down, cash flow horrendous. Levering up to buy back stock, but not accretive as they will be buying back at 25x EPS. Expect stock to drift down to $100 next year.
This company reeks of accounting fraud. Receivables, inventory, PP&E all up a lot YoY. Free cash flow is consistently negative. Company keeps piling on more and more debt. This house of cards will collapse soon.
Company constantly cheats on earnings by under-depreciating. Generated barely $2.25 of free cash flow per share. Propped up stock with debt-fueled buybacks, but there is a limit to this. Guidance is a pipe-dream. Company will earn $7 at best. Put a 15x multiple and this is a $105 stock.
Happens every quarter. Co. "beats" low expectations, stock pops after hours, then the next day insiders start dumping the stock and it declines. Notice co. says transformation is complete. So annualize 37c of proforma EPS and you get $1.50. Why pay 45x for this? It's a $40 stock at best.
Price action driven by a few hedge funds attempting to pump up their performance numbers. This company will earn $200 million a year at most, so expect the stock to come crashing down in the next few years. And don't forget the billions in shares that management will start dumping on the market.
Yes, they will just change their own optimization procedures. Upside to $40 per share. Expect them to announce a buyback soon.
This price move is silly. They are paying close to 10x revenue for this asset, and partly in shares that the sellers will be sure to dump in the market soon. Expect BCEI to move back to $45 soon.
Here it is:
Will be $98 so that they can say $50 billion and 30% premium to price before rumors. DTV will trade at $90 once announced reflecting 8% discount since 1 year to closing.