i'll be the other side. i bought 145 apr puts going into this earnings. I bought the stock in AH at 136.25 to lock into my gains. Honestly, that guidance was pretty solid. I'm having trouble figuring out what the bears grabbed onto ... I think the only way it wasn't going to sell is if this q was 20% above expect. My angle was this: iphone coming, valuation is perfect, and I wanted to test the waters since i'm already very long calls on some other stocks. in these markets, before earnings ... sell the runups, buy the dogs. This was a runup just asking to be sold. PS . i honestly believe despite being sold, this can open just as easily at 140-142 tommorow morning (despite my gain lock). big options sellers will buy the stock up to cover their sales at net gains. in addition, put buyers will be in a hurry to sell their puts since this move was a gift to the shorts (the fundies aren't that bad), so this will inspire some stock buying from options MMs.
Willie must be pissed taking his advice last Thu LOL Anyone who trades earnings directionally with stock in the absence of inside info deserves to have their account wiped out.
There was a huge run up before earnings. The stock is at all time highs. Their earnings were ok but not as convincing as they usually are. The numbers: Research In Motion reports Q4 results; guides EPS in-line for Q1, revs above consensus; Reports Q4 (Feb) earnings of $0.99 per share, includes stock based compensation expense that was included in analyst estimates, in-line with the Reuters Estimates consensus of $0.99 and a penny below the First Call consensus of $1.00; revenues rose 65.8% year/year to $930.4 mln vs the $936.8 mln consensus. Co guides for Q1, sees EPS of 0.99-1.07 vs. $1.04 consensus; sees Q1 revs of 1.02-1.07 vs. $998.03 mln consensus. As can be seen, they missed first call's estimates by a penny and missed revenue estimates by approx 6 million. Revenue guidance is good for Q1 but EPS is a little iffy. The midpoint is $1.03 which is shy of estimates by a penny. I think the stock will sell off further tomorrow but will eventually recover depending on overall market conditions.
A whole penny. The miss was smaller than I thought. Rimm had a big runup in the past week, but so has the whole market. There is VERY strong support in the 135-128 region which wont be broken. Even after Feb 27th Rimm kept going higher.
I think the the expectations were too high as the esteemed chartist Michael Scott noted last week.... Apprently, people were looking for GOOG look blowout. There are some issues that might be behind this. If you do not yet have a RIM device I think they will be getting cheaper.... http://articles.moneycentral.msn.com/Investing/StreetPatrol/ToughTimesAheadForBlackBerryMaker.aspx
bidu crashed 60 per cent before recovering. because you don't sell you didn't lose money. you must have received an A in logic 101.