AgFeed knocks earnings estimates out of the ballpark... stock surges up 21 cents?
Baffling to watch (FEED) after it's amazing earnings report start at $15 a share and slowly collapse to $12.71! And then at $12.50 in after hours trading!
Granted... It's profit taking and short selling and so on. I don't care. With an earnings report like that I took the collapse to my advantage and bought FEED back down to $12.71. (25 shares bought at $13.48 and 25 more shares bought at $12.97).
If this has a lack luster performance out of the gate tomorrow I'll nearly double my stake in FEED or at least consider it. How long will FEED remain a $12 stock given it's great track record so far?
It will only take an analyst upgrade on the stock to squeeze out the shorts and get this stock back to $15 a share. The reality is this thing should be trading at $18 a share right now especially considering next quarters earnings expectations along with their 1 million hogs expectations for next year.
Some people argue FEED is not an investment, just a trade. I laugh at that notion. I couldn't care less about cycling this stock (although I have cycled it once or twice). As long as this company continues to knock the cover off the ball on earnings reports, I know that share price appreciation will keep this stock going for many years to come. It's up almost 50% year to date and that is probably why we aren't seeing anything spectacular. It's already had a spectacular ride.
I'm more interested on how this stock appreciates next year because +50% of $12.71 is 19.06 and FEED ought to reach $19.06 in due time.