*sigh* Company posts record profits and 60% increase in income... and stock price declines 20% in 2 days?

[phatj]

can't find any news reporting anything negative... and the news that profits and income are at record highs just came yestrerday... what the hell?

the stock price declined 20% !!

 

[MysticLlama]

Happened to a couple of mine too this time around, but they've bounced back to pretty close to where they were.

One of the things to look at is if they've changed their outlook any. Sure they did great this time around, but are they saying things are going to decline next quarter?

 

[mugs]

What company?

 

[BoberFett]

So buy more.

 

[phatj]

already bought another $500 worth... we'll see what happens

 

[huberm]

remember that market price is the perceived value of a share of stock. Many factors can affect this - revenue is one small part.

For instance, consider if their revenue doubled, but they also tripled the amount of loans they had, or quadrupled their amount of expenses - this would definitely make the stock less attractive.

 

[BCYL]

Stock price is always representative of what people think the company's worth, including what they think the company's earnings should be... So even if the company does really well, but does not meet expectations, stock price will likely tumble...

 

[FeuerFrei]

Haha, maybe other stockholders know something you don't?

 

[Ricochet]

All of mine went up today. Of course it's been down for so long.

 

[LegendKiller]

What was market consensus for a EPS target? If it was lower and weakness was perceived, then analyst model adjustment and market assumptions were altered.

 

[cerebusPu]

check to see if it met analyst expectations. it could be the best quarter ever and still not beat the estimates, thus resulting in a drop in price on that day.

 

[JS80]

LQDT went down because they missed wall st estimates by a penny per share. Generally a 40+ PE stock needs to beat estimates in order to keep it's multiple.

 

[JS80]

Plus their outlook seems negative and they are increasing CAPEX:

Business Outlook

The following forward-looking statements reflect current business trends and our current operating environment, including the potential reengineering of certain business and inventory processes in our Surplus business with the Department of Defense ("DoD") as they undergo a review of their internal procedures regarding certain products remitted to us for sale. The implementation of these additional processes may require us to incur additional costs and will result in a delay in our receipt of certain surplus property items from the DoD. Our results may also be materially affected by other factors, including the Company's expectation that it will continue to make significant investments in its infrastructure and value-added services to support new business in both commercial and public sector markets.