quirky reaction to an unambiguously good earnings report. the company reported +7.8% comp for past quarter and then again double digit increase for first 3 weeks of new quarter. but in interests of conservatism, they stated they are sticking with their mid single digit comps gain for the new quarter despite the strong start, citing tough comps vs. last year. Conservative stance which then undoubtedly led to lousy stock action last friday. oh well if the Company continues to perform like this, $70 per share seems a foregone conclusion by the end of August!
i saw that dumb comment from Credit Suisse also..."looking for a better entry point"...wow that guy must have a Harvard MBA. In other words he likes the stock but wants it to go down first...wouldn't we all? But maybe because they wield influence they write something like that, the stock goes down and then they buy it...a pretty self-serving approach but that's the way Wall Street seems to work these days!!
so their take as of a month ago was that there was margin pressure on the upper end. This is contradicted by EVERY single statement on today's conference call. One wonders who the "industry sources" they cited were in their grim assessment with a price target of $47 per share. Hey Goldman what was the sourcing on this story which you failed to reveal?