Time to short this sucker. Mainstream media will praise them, but their target customers ain't Starbucks customers. Bad word of mouth/boycotts from customer base will steadily spread. Next earnings report will be well below expectations. Bet on it.
Entropic the company has a bright future. However, I am a little disappointed in their corporate website. It's a generic template worthy of an OTC company. Surely management can find some guy in the San Diego area who can come up with something a little better....a little flashier, more inventive and more interactive.
For those who say the site serves it's purpose....that argument would have merit if Entropic were selling low tech bric a brac. But they develop and manufacture high tech products. Their bio says they are "engineering the future of connected home networking and entertainment by providing next-generation silicon and software technologies to the world’s leading cable, telco and satellite service providers". Perhaps Entropic should consider developing a corporate web space on par with some of those same leading cable & telco companies that they do business with. Instead of the current pink-sheet worthy embarrassment designed on the cheap.
Come on guys, this is your corporate identity.
Traders make money on this thing. "Investors" get screwed over and over, waiting for the big breakout that never comes.
The best way to play a growing company/takeover candidate with a good balance sheet that trades like this i.e. ENTR is put half $$ in a core position (don't sell) and the other half trading in & out. Takes discipline and watching those support/resistance levels.
I agree it shouldn't. But it often does, like today. No way ENTR drops 40 cents in AH if BRCM reported next week, or guided higher in Q2. That's one problem of being a smaller player...you often move in tandem with the bigger guys in the sector, whether or not they are a direct competitor or not.
Broadcom's earnings report, not Entropic's, brought this down in AH. The simplistic house idiots reasoning was likely...."BRCM guidance is down a little, gee I've gotta sell ENTR". If they were smart traders, they wouldn't have been holding thru earnings. No, they were likely novice investors who panicked, allowing the AH shysters to pull this down on nominal volume. The #1 reason people lose $$ on the market is they don't know if they're a trader or an investor. Smart investors don't sell this after a decent ER in the AH's.
ENTR will recover by end of the week, if not end of the day Wednesday. BRCM, probably not so quick. In fact, they may really be looking at ENTR as an acquisition target now (among others).
I've learned to never underestimate the power of shorts to pull this down. But really, who would short this at $8 when it's already well off it's $13 highs, the ER beat consensus, and the potential of an acquisition announcement turning any profits into a big loss within minutes. Perhaps the same idiots who sold AH? Looking for some deals in the morning.
Getting ready to hit the 200 day moving average at 8.35. A widely-known technical analyst recently wrote in the mid 9's that the 200dma was where you wanted to buy back (some may know who it is). Look for the bounce.
Relax and quit panicking.
I'm holding over 1000 shares, plus 20 2012 & 13 calls, but this is also one of the best and safest trading stocks on the market. Many are buying the dips and selling after their preset % gains. Then rinse & repeat. Which accounts for the red days. Only an idiot would short Savient at this point.
The best way to make real $$ is buying sectors when they're out of favor. But it requires patience and ignoring your dwindling portfolio balance in the interim. Hard to do.
Some recent stuff. I'm not saying they won't still take this lower (even below $7.50), but longer term the shorts are toast.
Why Entropic Communications is my #1 Small Cap Semiconductor stock pick of 2011
According to this article on Fortune Magazine's Top 10 of 2011 performance so far, ENTR is off 33% (the next worst is off 13%). How long do you think that is going to last? Are Fortune, Forbes & Barrons all wrong? I don't think so.
Another bullish take on ENTR, despite the price drop
Buy Rating From Benchmark
Check those earnings forecasts, look at the stock price action, and scratch your head.
Short Info...$246+M Still To be Covered
If not for management's sloppy bungling of the news of not being sold (it was painted in media as "Savient couldn't find a buyer", rather than a preemptive PR that "Savient decides to market drug itself"), SVNT should be $20 right now. This stock was $15 before K even got FDA approval, which at the time was not a given, and then jumped to $22. Now, 8 months later, they get a 5 year veterans contract with the US Government, and they're still trading $5 less than before K
This is no longer a "spec" stock.The Forbes advice to limit your portfolio to under a certain small % was wise back in August, but not today. Mr Conservative me is putting 25% of his poerfolio into SVNT.
Volatility? Bring it on, And if it drops to $9.75, Those $11April calls will start to look really tempting, even to this risk averse trader. Positive PRs should easily put this at $25 by EOY.
What the heck happened at 11 to cause the price to fall 60 cents within minutes. A fund dump?
This stock appears on more daily % decliner lists than any other one I follow.
In this market, it's a relatively safe long term hold assuming you have the time and patience. I drank the BAC/banking sector kool-aid before earnings and bought the Jan 2012 22.50 calls, which are dropping by the day. A quick reminder for me that call options on most stocks are for suckers, because one market correction and you're screwed (even w/ 10 months until expiration). I expected this to be north of $18 by now.
It depends on a number of things....your age (younger I'd wait for a rebound however long it takes) and what % of your portfolio that 7K is. Over 5% I'd hold and wait for it to turn, especially in this market...making back that 7K could be hard. Continuing to sell for big losses is the surest way to lose net worth. Stocks like this almost always turn around, but tech is in a bad stretch. I'd average down on other beaten down (decent)tech names as they go lower (rather than doing it all on Opnext), rather than higher flying ones that may pull back.
Besides here, I'm getting slaughtered in ENTR, but am buying it lower as the shorts drag that one down.
Just bought in here the other day at 2.70 because I liked the story. Funny you should mention gap, because right now I feel like this guy....
stock_shlock = big schmuck.
BTW, I think some here have an idea who the culprits might be. The Daily Finance links are interesting.
Look at the quarterly growth and do your DD on the conpany's products. This takedown is about as blatant as I've ever seen for a company in this stage of growth. This will not be one that I missed when it's sitting at $40 in a few years, and kicking myself for not accumulating below $10. Once the Japan nuclear situation becomes more clear, I'm resuming my load up even if this continues it's decline. Some welcome this opportunity for "cheap" shares. But the fear it instills in many others not only keeps them from investing here, but can delay or possibly derail future growth. Not to mention it discourages investors from re-entering the market after the 2008-09 market collapse.
A few of us are very interested in finding out if any specific funds are relentlessly shorting this down, which we will all know soon enough. Shorting as a hedge is part of what keeps the market liquid, but targeted shorting like we're seeing here is nothing but a blatant attempt to put good growing companies in a tenable financial position (not to mention long shareholders). With the unemployment rate where it is, will Entropic be hiring when their market cap is being cut in half, despite revenue growth? Much less likely.
We want names, dates and numbers. This information will be crucial in putting them out of business. And yes, there are some politicians who want these funds heads on the chopping block.
Imagine me, helping a few anti-Wall St Democrats. Whouda thunk it?