This post was just published on ZYX Short Change Alert.
Pandora (P) reported better than expected earnings and provided guidance better than consensus. However, this guidance does not justify the present stock price.
The trigger for entering this trade was the potential impact of a competing service from Apple (AAPL). Service from Apple is expected to be introduced this summer. The plan is to continue to cautiously build a position over a wide price range until the impact of Apple service is known. At present only 45% of the full core position size is being held. In other words, there is still room to build the remaining 55% of the position at higher prices.
This is a long-term position and we have warned from the beginning to be cautious and slow due to high short interest and short squeezes.
What To Do Now?
Those in the stock may continue to hold and plan to add if the prices go higher and there is a signal on the Real Time Feed.
Those not in the stock may wait for a signal in the Real Time Feed. The reason is that the short squeeze may take the stock even higher from here.
