RE: RE: Why Now?bladerunner, one needs to look inside before looking out.
This is easy to blame Caputo. But a) he didn't provided guidance and b) at prices prior to today, the stock price was overvalued based on q4 2010 & total 2010 #'s. It is convenient in your 'argument' to leave this point out.
Again, $18-$19M isn't that bad. It's not $22-$24M but for Q1, that's fine so long as, imo, that's the low for any quarter in 2011 & svc surpasses $100M in revenue for 2011. If not, let's talk & I'll start moving to your side of the aisle.
No, this is every investor's gamble - it was overvalued prior to today & investors expected q1 to be very rosy. Investor's took a shot at a higher price & probably many of the short term holders sold and bailed out.
Did he trick investors? That's a pretty bold statement without any fact. I suspect Phat is right - this is just an accounting accrual issue - the revenue is there, the pipeline is strong & customers will continue to order svc's solutions. Note svc was prudent to note that they did not lose any customers or deals.
Investor's will once again speculate in the future - the share price will be higher than the valuation, and some traders will bail thinking the stock will get hit. Until it doesn't and the price goes much higher for various reasons, including major customer wins or big pick up in revenues, etc. That's when long term investors will be rewarded and many have already by sticking around.