The facts: New D comes out with record earnings, on record revenues, at a time when many tech companies came out with earnings disappoints. New D hints that business is very good in their conference call, so much so that they are going to increase their direct sales force by approximately 25%. Also, as of last night, they finally get analyst coverage by Oppenheimer: a "buy" rating with a one year target of 30, a price roughly 50% higher than it closed last evening.
Now let me see if I have this straight: On a day following analyst coverage being initiated with a "buy" rating, pegging a price 50% higher than yesterday's close, which would still give them a P/E that is discounted relateve to their growth rate, during a week when they reported record revenues and earnings, and on a day when the tech sector and the NASDAQ as a whole are up, New D is down??? Its a joke, right? Its really up a couple of points, right?? |
