Gregor wrote: "please post your top 5 reasons..."
Thanks Gregor. I am sincere (the limit order is in), but I don't have five reasons. Only one. The earnings revision profile on this stock has deteriorated dramatically since I bought this stock, at which point its earnings revisions were signalling a strong buy.
I wouldn't even count on an earnings surprise to move this stock up in September. There is just too much confusion around this stock, and there is no convincing case for strong revenue and earnings growth at this point. The analysts are now mixed on this one, and there is nothing to draw the hot money in, regardless of what you may personally think about the company, which could be completely accurate.
When there is uncertainty about a company's growth and business plan, earnings surprises have little or no impact. I picked a stock a few months ago because I could see that it was going to produce a good earnings surprise. Sure enough, it beat expectations by 175%. Impact on price: zero.
At this point, I think this stock is appropriate for those with lots of faith, or the woozie.
Happy Investing!
Vanni |
