This post was just published on ZYX Buy Change Alert.
CUDA is a cyber security firm. After reporting roughly in line earnings, CUDA just had a very disappointing conference call. In a surprise, the company says that the security market it serves is slowing. CUDA guides Q3 EPS $0.07 – $0.08 vs. consensus of $0.10; guides Q3 revenue $79 – $81 million vs. $82 million consensus.
Company guides FY16 EPS $0.30 – $0.36 vs. consensus of $0.39; guides FY16 revenue $320 – $323 million vs. consensus of $352 million.
Previously stop hit at $22.73 on half the position (1/2).
The stock is being crushed in the after market. It makes sense to, at least temporarily, continue to hold it. The reason is that the company came public at $18.00 a share on November 6, 2013. The first trade occurred at $22.20. This indicates that there should be some support at $18. In the regular session tomorrow, if it trades below $18. on volume, it may even go lower as stops get hit. Stops are likely under $18.
Based on the trading pattern over the next few days, we will decide if it makes sense to add to the position or to exit at a loss.
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