Originally Posted by
value_investor
What I don't understand is how after the last earnings downgrade, the stock fell from close to $8, down to below $7 and then back to $8. It literally went up in value after a profit downgrade. This would be understandable if the company was a good one. Like the company had strong fundamentals, or good management, or they were in a stable environment but FBU aren't!
This movement is ridiculous. How can a stock with 3 profit downgrades in a year be trading at such a strong multiple. Is there too much emotion about FBU out there? Perhaps a lot of older folks putting money into it. Or is this just the bull market?
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