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RODM will Release Third Quarter 2009 Financial Results on October 22, 2009
Earnings last qtr were very good but at that time there are at least two things that contributed to its minor pop on the day earnings were announced:
1. Volume and visibility of the stock was very low overall
2. To report spectacular earnings once can be a fluke, especially if they came off a very bad qtr and pushed transactions from Q1 to Q2. So no one got too crazy when they saw that they beat their earnings.
The difference this time is that RODM will now have two consecutive qtrs and likely give good guidance for the next qtr or two (at least) and that will look more consistent and profitable for the future as this forges forward.
If you compare with other companies with an EPS ~ $0.40-0.50 you'll find that they typically trade in the range of $15-20 PPS, and RODM has that EPS with no debt and complete transparency to the investor as deals get announced. That is why you saw after the Q2 report, as deals were announced investors felt better and better and the stock steadily rose as they got a sense that their business was picking up and was more consistent.
Happy Trading
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