Wish I had more shorts today! CYBE another one I like on the short side, also dropping. Stock jumped from the $16's to the $22's in recent weeks on no news from the company. They've given weaker guidance for Q3 (revenues of $13M-$15M), and have announced zero orders so far this quarter. Not sure why momo traders chased this one over $20, but I think they'll regret it when CYBE reports earnings next month. Q3 revenues & earnings will be a lot lower than Q1 & Q2. They'll face some brutal comps in 2017 and will also start paying taxes next year.
Shorted a few TAYD in the $19's today. I actually like this company. But noticed in the recently reported Q4, that they paid a minimal tax rate. So Q4 earnings were weaker than they looked. Gross margins were down for the first time in several quarters...not sure what happened. They've got a tough Q1 comp next month. Should be a solid quarter. But I think revenues, earnings & backlog will all be flat to down vs. last year. Stock has run up from the $13's earlier this year. Maybe it does nothing, but I think a good chance it could drop $2-$3 after earnings.
