Are they being unduly punished for any particular reasons after good results, and if so, can you explain why the markets are pushing the stock down so hard?
I'm confused as to why this stock keeps being held down with such good growth over the past few years!
Any further help would be greatly appreciated.
Thanks!
First, on the decline, we would note that the stock rose 39c in the three days prior to the release, so the 10% drop Thursday really only equates to a 4c drop for the week so far. Some investors no doubt got worried about lower margins and growth, but the market 'should' move on expectations and we would have assumed these were in analysts' forecasts already. Guidance was increased and calls for 25% growth but investors seem skeptical this will be achieved for some reason. We like the 15% organic growth. The conference call did not add too much, and management was confident. There was some discussion on a weaker Q1, but this is mostly seasonality, and again, we would have expected analysts/investors to be aware of this seasonality. Nothing in the call gave us any additional concerns.