Looks like Steven A Cohen/Point 72 Asset Management has accumulated a 11.8% stake of the company. This is great news if anyone is familiar with the "follow the whale strategy"..eg, put your money where the big boys do. This is at least 4 or 5 hedge funds that own reportable stakes in this company and I'm now convinced that there will be a sale/merger in the next year. Hold onto your shares!!
Not sure how badly it's going to get hit today, company is transitioning to mobile model, which generates a lower contribution rate, but higher growth than PC...market wants mobile. I think most of the bad news was already baked into the price. This company will generate $100MM cash in 2015 with little CAPEX, so is valuable. There are a number of hedge funds with large positions and no one has sold down in the past year. My guess is that they (hedge funds) will force a sales of the company.
Pretty sure that the strong US dollar is going to have negative impact on foreign sales, enough so that they may miss rev/earnings. Most multi nationals that have reported have had some sort of negative impact due to strong dollar. Having said that, I'm long, staying long, and hopefully market will overlook temporary dollar issue.
There is a new SEC filing today, but it's positive -- existing large shareholder, HE ZHENGXU, increased it's stake to 8.23% from 7.61%. If you check volume, there was a lot of large lots being sold at the open.