Just $1 in EPS. As usual, guidance for next year is aggressive and they will end up lowering it mid-year. Put a 30x multiple and this is a $30 stock. Huge downside.
Could be, or they could just carry a naked position. For example, I have sold some of my stock and sold puts to replace them. Looks like Ackman was buying from me on both legs :-) More seriously, from the description of his position sizes, it looks like he has bought Jan 15 puts.
I concur. This is a huge bubble based on hope. They have billions in debt, management has given themselves huge amounts of equity, and there is high execution risk. $10 stock at best.
Magically transforms $0.50 GAAP EPS to $2 non-GAAP by liberally excluding recurring operating expenses. Look at the free cash flow. Only about $4 per share. Put a 20x multiple and this is a $80 stock.
Well, you haven't disputed any of the figures I put out. Look at the free cash flow and the liberal non-GAAP exclusions. Momentum can carry a stock only so far before the inevitable painful crash.
IOC falling 35% today, which is what happens when the bottom falls out of an overhyped story with greedy management and no profits. LNG is a $10 stock at best. Beware!
$1.2Bn of share repurchases can't reduce share count as insiders massively exercise options and sell their stock. Hugely capital intensive company that cheats on depreciation expense. 30x free cash flow. Put a 20x multiple and this is a $95 stock.
EPS estimates are too aggressive. Remember, there will be huge marketing costs, etc. associated with a new drug interaction. $2.50 EPS at best. And the drug only has a limited patent life. Company will have to save up the money to buy another one to keep business going.