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Posted via CB10
Can anyone explain this to me?
I don't understand. It took an Avalanche of partnerships and great news to make to the stock go up 7% yesterday. Today it is currently down 8% for absolutely no reason.
It's like great news is good, good news is bad news, bad news is a disaster.
I don't get it, if Apple has security leaks, bent phones, or nude photo celeb leaks its stock goes up. BBRY drops hard on no news.
I just really don't understand. Can someone explain the massive drop today? This can't all be price taking.
I'm not just complaining, I'm hoping someone has an actual technical answer.
Posted via CB10
Ever see a kitten playing with a ball of yarn?
The drop today is likely the result of profit-taking, and after the dramatic run-up that the stock has seen in the past couple of weeks it's not unusual at all to see a retreat.
The announcements yesterday are all moves in the right direction, but the market is waiting for hard numbers and solid indicators of sustainable growth.
Totally agree. Profit taking normal. Looks like $11 is the new support. If it drops below $11, I'd be a little more concerned.
Is it normal for profit taking to take a stock price that low though so fast?
Posted via CB10
June 28, 2013.
Earlier I saw the stock price declining also and was scratching me head. But, earlier I did a little research and this article should explain it.
NEW YORK (TheStreet) -- Shares of BlackBerry (BBRY) declined 2.57% to $11.75 in morning trading Friday after the telecommunications company announced its fiscal year 2016 guidance during its analyst day on Thursday.
The company now expects services revenue for the full fiscal year 2016, which ends March 2016, of $800 million, a 50% decline from the anticipated fiscal year 2015 total of $1.6 billion. The consensus estimate for BlackBerry's total full-year 2016 revenue is $3.78 billion, almost flat year-over-year.
BlackBerry's services revenue has been declining and reached 46% of total revenue in the quarter ended in August, down from 54% in the same quarter one year earlier.
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More than 13.9 million shares had changed hands as of 10:34 a.m., compared to the daily average volume of 12,552,500.
Separately, TheStreet Ratings team rates BLACKBERRY LTD as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate BLACKBERRY LTD (BBRY) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Computers & Peripherals industry and the overall market, BLACKBERRY LTD's return on equity significantly trails that of both the industry average and the S&P 500.
The revenue fell significantly faster than the industry average of 13.8%. Since the same quarter one year prior, revenues fell by 41.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
Despite currently having a low debt-to-equity ratio of 0.43, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that BBRY's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.39 is high and demonstrates strong liquidity.
BLACKBERRY LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BLACKBERRY LTD reported poor results of -$11.17 versus -$1.20 in the prior year. This year, the market expects an improvement in earnings (-$0.26 versus -$11.17).
The gross profit margin for BLACKBERRY LTD is rather high; currently it is at 57.97%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -22.59% is in-line with the industry average.
You can view the full analysis from the report here: BBRY Ratings Report
Source Link: http://www.thestreet.com/story/12954...o&cm_ven=YAHOO
When you look at how fast the stock has risen in recent days (NOT just yesterday), yes. The stock has appreciated over 25% in one month, even at today's price. If you'd bought in on Oct 15 you would have only paid $9.97 (for BB on the TSX), but you could have sold it yesterday at as much as a 40% profit. Pretty tidy for less than 30 days.
When short-term shareholders see a spike like that, they'll sell into it unless there are actual numbers reported that support continued growth.
From what I read (I'm a newb to this), part of the spike upwards was from shorts trying to cover. So that probably drove the price up where other investors could enjoy some profit-taking which then brought the price back down.
The real answer is that there are lots of angles to be played in the market.
People with a large number of stocks bought at earlier year lows will definitely sell at a peak. Then after it drops back down they will rebuy. Basics of the stock market. Not many tech stocks besides google and apple and facebook are worth long term investment.
Chen has said himself that it is very important that BBRY show revenue growth. In fact, it will take quite some effort even just to replace the $800M expected decline in service rev from FY15 to FY16.
That's not a small issue. Personally, I won't buy the stock again until we see some substantive positive movement on the revenue needle.
I'm not dismissing the fantastic job Chen has done to stabilize the company. I'm just saying that was but step one. The next step of actually getting the company back on an upward trajectory is not trivial.
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Stock prices are controlled to make companies go broke and someone a ton of cash
Yeah
Markets are illogical
If markets were logical, most of us would be filthy rich
But the explanation likely goes with the fact that people were selling to reap in some profits looking to buy in again at a later time
Thats what I did and what Im planning to do
No worries...how much we up since JC took over?
Passport'n stuff all day long.
That is untrue. As an individual investor, you have much greater potential for gains than the market.
The trading/investing patterns of investment funds are severely limited by their size. As an individual, you have many more choices to invest in and can enter/exit positions quickly and easily. Not only that, many large investors are subject to close SEC scrutiny further limiting their strategies. Furthermore, there is often weak incentive for fund managers to yield great returns and investment banking is hardly a meritocracy.
Overall, there are many obstacles in the way of individual investors; but, those who do beat the market can beat it by a significant margin.