RE:RE:RE:same trading pattern again and againSeems reasonable what you're explaining but I have some comments:
- maybe the trading pattern is due to Bots, in this case the bots are only acting on the sell side. When stock is up you can see multiple brooker involved indicating a diversified buy side, as soon as the stock is around 7.15-7.2, you'll notice the anonymous trades flooding the market and bringging down the price
- PER of 17 , i assume you estimated it based on non-normalized PAST earnings. We should more take into account the confirmed high growth and normalize the future earnings. you'll see that the stock is trading around 9-10 times the expected earnings, which is again ridiculous for a growth stock
- Yes stock exchange is for everyone, execs and insiders included. But when execs and insiders are selling hudge volume, it can be a signal that these insiders preffer to cash out due to lack of confidence in the future growth (or and I Hope this is the case, they are just managing and rebalancing their portfolio). When Buffet sold Apple, shareholders did get the reason and it was for tax management purposes. Execs, insider and the largest chinese shareholder of PAY are selling millions of shares, and I'm still wondering why.
Bottom line, I'm long on PAY, and I will still be, I really think it's very undervaluated, will trade on both side for a while but remain long.
PS: I expect a drop in the next quarter earnings due to 2 reasons: They have to invest in the infra to support the new contracts (UBER, ADP..) and they said in the last call they will start to explore international markets, and by experience, I know that can be expensive at the startup.