Research in Motion Drops 10% After Hours, Precisely As We Warned Two Months Ago – MARGIN COMPRESSION!!!Submitted by Reggie Middleton on 03/24/2011 19:29 -0400
I warned, in detail, that Research in Motion was a strong short due to waning market share and margin compression in January. RIM warns of the EXACT SAME risks as it lowers guidance earlier today. For all of those optimists in the stock, this is just the beginning - for RIM and its competitors as well. Mobile computing will soon be a commodity business like desktop computers.
Has The Chairman Stopped Ordering Ink? Hewlett Packard Plummets After Hours On Major Downward Guidance RevisionSubmitted by Tyler Durden on 02/22/2011 18:06 -0400
Looking at the price of HPQ after hours, one would think that the company was a biotech which just missed its Phase 3 trial. The rapidity with which it has lost $10 billion in market cap does not leave many other options... Of course, there is always the chance that Ben Bernanke may have just said no to future purchases of green ink, although we deem it highly unlikely. The real reason for the plunge in the stock was the company's earnings, which confirm that the new paradigm of economic growth, may be just slightly problematic. While the company missed on revenue, coming in at $32.3 Bn on expectations of $32.97 Bn, it is the forecast that left many stunned: HPQ now sees Q2 adjusted EPS $1.19-1.21 vs. Exp. $1.26, and full year revenue of $130-131.5bln vs. $132-133.5bln previously, and consensus of USD 133.1bln. So now in addition to plunging margins (Cisco) we are finally starting to see headline growth... And all the sellsiders continue to hike the 2011 EPS on what again?
Fedex plunged after hours only to retrace almost all of the drop, after investors were assuaged that the reason for the company's guidance cut was snow (in December, yes unbelievable), and plunging margins (this is one-time: just recall Goldman's most recent lies on the topic). In other words, while QE3, 4 and 5 is now the norm (i.e., perfectly recurring), such things as snow, and plunging profits, are transient. After all, it is only a matter of time before the Vissarionovich Jr. finds a way to subsidize his pet Russell 2000.
Google Beats Earnings As Eric Schmidt Hands Over CEO Spot To Larry Page, Stock Goes Berserk In After Hours TradingSubmitted by Tyler Durden on 01/20/2011 17:06 -0400
Google trading in afterhours is like a ritalin-fueled, amphetamine-infused roller coaster ride. After opening $25 higher, the stock subsequently turned red. And while results were great, the executive shake up which sees Eric Schmidt becoming Chairman and Larry Page CEO is spooking the stock. Perhaps that explains why GOOG has been one of the biggest insider sellers in past months...
Alcoa Earnings Beat Consensus By $0.02, Revenues Miss Expectations By $100 Million, Stock Opens Down 1% After HoursSubmitted by Tyler Durden on 01/10/2011 17:14 -0400
- EPS reports adjusted $0.21 on expectation of $0.19
- Revenues of $5.65 billion miss expectations of $5.75 billion.
- Sees global aluminium growth rate 12% for 2011
- Sees global aluminium demand doubling by 2020
- Q4 Adjusted EBITDA of $782 million, 13.8% margin
- Q4 CapEx: $365 million
- Cash on hand of USD 1.5bln at quarter end
- Improved earnings were driven by higher pricing and continued strengthening in most markets and improved productivity
- Quarterly results were offset somewhat by a weaker USD and higher energy and raw material costs
- CEO says expects Chinese demand to slow.
As readers will recall, just after the abbreviated Thanksgiving session, there were some pretty dramatic afterhours fireworks, both in stocks, and in a variety of volatility indices, that of gold (^GVZ)most notably. As the charts below capture, the drop in the futures had offset basically the entire day's upside in the span of milliseconds, leaving many wondering just what had caused this. Luckily, courtesy of the Tabb Group's Paul Rowady we now know that this was yet another glitch borne out of the hyper-technological sophistication of the current marketplace, in which the smallest error can and will propagate through the system uncontrolled resulting in major losses for those who are aligned on the same side as the ponzi. In other words: it was yet another flash crash which luckily did not have a major impact as virtually no volume was being transacted in the market. All this merely means that Ben Bernanke, who is doing everything in his power to boost asset values, has increasingly more variables working against him as the system continues being pushed ever further away from its natural equilibrium, until one day it all just burns down.
In addition to the rout in the ES, VIX and GC which we pointed out earlier, there were some additional fireworks behind the scenes in today's after hours session. The CBOE Gold Volatility Index, the ^GVZ plunged by the most in over a year, as the index hit an all time low of 15.92 without the underlying making much of a notable move. The most curious aspect of the trade was that the entire dump occured in the AH session. Many were left scratching their heads over what caused this monstrous unwind in long vol positions: was this the unwind of a massive long ES/short GC arb? We don't know, although if rumors that a major fund is planning to stand for delivery of Dec gold turn out to be true, then obviously someone got confirmation today. Keep a close eye out on the GVZ. Should this price level persist on Monday, then the front futures contract will likely surge.
Earlier we pointed out that today was trending to be one of the lowest volume days in history. A volume surge accompanying a panic dump into the close managed to pull the daily volume just barely higher than last Xmas eve (though still about 60% of last Black Friday). What is more relevant is that just after the market closed, the bottom fell out. ES closed at the lows of the day (contrary to amusing flashing and epilepsy-inducing CNBC "breaking news" propaganda stating just how much better compared to the day's low the S&P was trading at EOD) as the entire world woke up just after 1 pm realizing that Monday has that very deja vu-ish September 15, 2008 aftertaste. Not surprisingly, VIX exploded to the week's highs, well past the Korean war threats, and a 14% move in one day. And, yes, that old backstop gold, pulled a VIX. What is most relevant, is that something big is happening just behind the scenes: ZB volume explodes to 608K, while the CME Ultra Treasury volume of 349K surpasses the prior record of 237k. Monday may just be a very interesting day as faith in the bailout machinery no longer works, and the Fed's two POMOs will mark the point where Brian Sack officially jumps the shark.
All three companies beat, yet Amazon not liking the news (down 4% AH), and now AXP going red. Of course, this being one of the most roboticized stocks, looks for the HFT crew to throw in some extra volumechurn in exchange for capital losses offset by liquidity rebates to bring the price back.
BoomBustBlog Research Hits Another One Out the Park! Google up nearly 10% after hours, true blowout earnings unlike JPMSubmitted by Reggie Middleton on 10/14/2010 18:49 -0400
Google's earnings surprised everyone except BoomBustBlog readers and subscribers - and this is most likely just the beginning.
For all those engaged in a repeat of the world's most ridiculous dash for trash, what just happened to GMCR may be a stark reminder that easy come may just as well mean easy go. The stock, which earlier closed at a fresh all time high, has plunged in the AH session after deep in the bowels of an 8-K just released, the firm disclosed the following stunner:
On September 20, 2010, the staff of the SEC’s Division of Enforcement informed the Company that it was conducting an inquiry and made a request for a voluntary production of documents and information. Based on the request, the Company believes the focus of the inquiry concerns certain revenue recognition practices and the Company’s relationship with one of its fulfillment vendors. The Company, at the direction of the audit committee of the Company’s board of directors, is cooperating fully with the SEC staff’s inquiry.
Cisco misses and stock drops 5%. In the meantime, futures are now plumbing the day's lows after hours. And the most troubling development from CSCO, worse than the top line miss, is the catch courtesy of Bloomberg's Adam Johnson that Days Sales Outstanding surge from 27 to 41 days. Customers incrasingly refuse to pay on time. We wonder how that will be spun favorably.
Anyone looking at their 401(k) portfolio performance since the end of August will undoubtedly be very happy (and extremely surprised), as the market has climbed steadily higher despite i) increasingly declining trading volume and ii)consistent and material withdrawals from domestic equity mutual funds. Furthermore, if anyone was merely looking at the trading action in regular hours, one would think there was absolutely no profit made since early September. The reason for that: all the upside since September 14th has come exclusively from after hours action. The chart below demonstrates the relative performance of regular hour trading in the SPY as well as that in the extended session. The notable observations: gaps, gaps, gaps. Every single day, minimal volume pushes the futures index higher. Good news, bad news, it don't matter to the Goldman S&P and Russell 1000 futures desk: they just lift every micro offer, giving the impression that the market is unstoppable, often leapfrogging each other as the latest viagra'ed GDP or unemployment rumor is spread. Come morning, it is time for the HFT brigade to come in and scalp their trillions of pennies while leaving the market unchanged, then at 4pm handing it off again to leveraged futures manipulation and dark pools. In a nutshell, this is the secret of the past quarter's phenomenal market performance.
Big drop in SPY AH to below VWAP. Big blocks pushing lower. What is one missing here?
After an ~20 million cumulative volume shortfall from average until 4:00pm, volume went green for the day in the first two minutes of After Hours traing. In the meantime the SEC continues to do absolutely nothing.