Quick thoughts with notes to follow -
If this is indeed one of the next great growth stories, these type of blowouts are to be expected. This may be the launch point when we look back. The difficulty in this case is the presence of what they call Recoveries, which I do not have a handle on yet. They are material in size, part of their business(not going away), and virtually impossible to predict. IMO their presence will smooth over time, but the impact will be most evident in yearly guidance, where they will have to be conservative......no reason to ever miss a number because of the timing of a Recovery. As such, their minor move up in yearly guidance of $10M is likely to be the norm, and I expect under promise and over deliver to be a constant.
The candle is lit.
Cooters
PS - I put on a fairly big options trade going into tonight(some strikes are pretty much just me), on top of a rapidly growing LT position. Options activity has been anemic, premiums are virtually nil, there aren't even many different options available. Other than one strike that has over 1,000 open interest there is no speculation here yet. |
