Should move up after market opening. Best quarter ever of the company. Guidance does not include the the positive impact from tripadviser deal. US booking only counts roughly 12%, it should not impact the bottom line that much. The bright spot is China as mentioned in the CC. THe stock should close around 1400 today due to the sell-on-news activity.
The company better to do this earlier to avoid, otherwise, the bigger punishment from the wall street . The management had some missteps since last year. They did not fix the problems in China at all. The only option left for them is to split the company. Aloca and HP are all doing this.
Then the company should not issue any shares since it said has enough cash, and let the stock price go 10 times higher.
How overpriced it is? NKE at $122 with estimated 2017 EPS $4.88. SKX, at $126/share, its 2015 estimated EPS is $4.97, 2016 EPS is $6.48.
The price moving is the manipulation by funds managers, since this company is almost 100% owned by institutions or insiders. When time comes, it will be in $200+ within a blink.
The activists will continue to push the company to restructure. Wait and see.
One analyst said if this happens, YUM should be valued at above $130. a simple double from current price.
How do you know? Unless you've got some reliable info on this. However, I think this is unlikely to happen near term. SKX is still growing fast. The company might wish to grow it alone. Look at the earning, if Q3 and Q4 follow the trend set up by Q1 and Q2, SKX is easy to earn $6/share in 2015. Way more than double of 2014 EPS. Look at UA, it has nearly $22Bln market capital with similar sales and way worse earning than SKX. which is still under $7bln market valuation.
Have you ever counted how much percentage drugs are taking in the total medical cost? Very small. Good drugs actually reduce the total cost by a large amount. The real thing to blame is the medical system. Not the drug prices. For example, if the pill of $750 can save the life of a patience and reduce days even months of hospital or re-hab care time. The saving is huge for the insurance companies. Even the drug prices are pushed done, the overall cost of each patience will be NOT much different because drug cost only takes a very small percentage.
With a similar multiple, LNKD should be traded above $400/share. Now it is even below $200, just insanely undervalued. Very soon, the street will realize its huge mistake. After one more earning report, LNKD will jump over $260 and make a run toward $350, like NFLX did during the summer.