That's right...if the big hyped up ONSL fell flat on its face...if EGGS doesnt report GREAT earnings...nothing can save it....heck..it doesnt even have analysts covering it yet and its finished!
For all those reading, don't count on EGGS to report a stellar EPS number...the key number will be Revenues, as you can fudge EPS by manipulating the income statement but you can't mess around with the top line...the way to value these companies is more on a revenue and the basis of the implied growth, as the dynamics of the income statement will eventually yield the numbers...problem with everyone's focus on earnings is you have to look at gaining market share, doesn't even MSFT sell its OS at below what they could to ensure domination (something AAPL obviously misunderstood the power of)...now if ONSL had computer related equipment procurment problems...who has been in the computer related business longer...who has relationships going back many years...who knows the business of running a business better...hasn't Orban turned around another discount retailer before ala ROST?, hasn't he struck some cobranding relationships ala YHOO, ATHM, etc? hasn't he updated his facilities to manage the increased volume ala the SUNW/ORCL facility upgrade announcement...I think so!
Granted, we would all like to see EGGS trading at...pick a higher number to your suiting...however, the company is trying to take care of business and allowing the stock price to take care of itself...I recall in November buying 5 figure size in DBCC at $6 with the impending MKTW IPO en route...figuring all understood the same info I had at my fingertips...WRONG!...I sold at $9 the first time, bought back at 10 1/2 selling at 14, then buying for the last time at 16 out at 18 because I figured that $100 MKTW would equate to at most an $18 DBCC price, figuring I had squeezed all the juice from the orange, even though I watched the price soar to above $40!!!...finally, but it was beyond me to figure out what drives people to do certain things...so I'm not trying to figure out what daytraders are doing, or any other ...remember also that many people thought today's close would release numbers for EGGS...didn't come, maybe they got easily shaken out...so be it.
Also I mentioned to some that I know some of the brokers at Montgomery were playing EGGS 3 or 4 weeks back...all day today MONT was a seller. Now I don't know if many know but the old CEO of MONT, Thom Weisel has started his own investment banking firm having hired roughly 60 people. In today's SF Chronicle it was stated that he is hiring roughly 10 people a day...many from MONT. I don't know if many of you have ever left a brokerage firm without first clearing out your account...with the volatility of today's market you don't want to transfer your stock through the ACAT system (which can take up to 2 weeks) without the ability to liquidate your account. I suspect some of their selling was due to that phenomenon.
Hope the above has helped soothe some of your rapidly firing synapses.
as usual...bonne chance, et jusqu'à demain (good luck and until tomorrow) |
