No retraction, no apology, no nothing. Zacks downgrades AMCC, based upon Zacks own mistake-riddled report, and the share price rallies nearly 12%. Zacks could be the greatest contrary indicator of all time. Why are their pronouncements even posted on anyone's websites?
It's amazing how often their grading technique on stocks change. Very difficult to follow.
From what I have been able to gather, AMCC is on the move up, their product line will soon be growing in a very big way. I would have to believe that one would want to be purchasing this stock before it begins to make the move up.
Zacks is the only ratings company with a "sell" rating. Everyone else either has a "buy"or "hold"
In fact, MSN Money price target on AMCC had been set at $8.50 for quite some time and has recently been raised to $9.50 share.
interesting to see what arises at the investor conferences to be held next week(8/10-8/14) in Boston.
Last Edit: Aug 7, 2015 15:07:30 GMT -5 by christopher
True to form, Zacks downgrades, and the shares go up $0.03 on a day where the market went down. Zacks' opinions could be the greatest contrary indicator ever!
I'm going to start to sound like Lenny Bruce reading from his court transcripts during his stand-up routines, but Zacks really sounds like they have no idea what they're talking about to me.
From Zacks:
"Applied Micro reported disappointing first-quarter fiscal 2016 results as adjusted loss of $0.11 was wider than the Zacks Consensus Estimate by $0.01."
From the transcript:
"Our net loss on a GAAP basis was $7.4 million or $0.09 per share versus a net loss of $15.1 million or $0.19 per share in the prior quarter."
Zacks seems to be having a problem with this whole number-line thing. If you have a smaller loss, isn't that better? Did Zacks "adjust" the numbers in some mysterious way? We don't know. At least I don't know.
Zacks goes on to say:
"Net revenues for the quarter declined to $37.8 million from $50.3 million in the year-ago quarter."
There was a y-on-y decline, fair enough.
Zacks goes on:
"Competitive strides in the industry are likely to have a detrimental impact on its businesses."
What about first-mover advantage or consolidation sparking a buy-out? No? Nothing about that. OK.
Zacks opines about AMCC's PowerPC business:
"Applied Micro‘s computing segment continues to be adversely impacted by overall business spending cuts as the PowerPC architecture is reportedly in secular decline."
The earnings transcript said:
"Strength in our connectivity product revenues, particularly our X-Weave 240 gigabit per second and OTM products, served to more than offset lower PowerPC business. As we have noted previously, we expect PowerPC to oscillate around current levels in the near term."
So the new products are more than making up for a decline in legacy, which has stabilized.
Zacks goes on to say:
"Management is also concerned about the continued macroeconomic challenges."
As well they should. Shouldn't the macro environment always be a concern of management?
...and here's the kicker:
"However, Applied Micro is likely to rebound with its diversified product offerings, such as X-Gene and X-Weave, and is expected to witness healthy growth in its connectivity business."
What?! That sounds like a good thing. Is future growth the leading characteristic of a stock labeled "sell"? WTF is wrong with Zacks?
" In first-quarter fiscal 2016 (ended June 2015) Applied Micro reported disappointing results as adjusted loss of 11 cents per share was wider than ZACKS consensus estimate by a penny".
WOW this is great!!!
" Also revenues decreased significantly due to softness in demand. However the company is expected to rebound with it's diverse product offerings and TOP MANAGEMENT RESTRUCTURRING IN THE LONG TERM "
I thought the leaving of the CFO was supposed to be a negative? unless there is something else being restructured, which I doubt.
This is all getting much too confusing! There are too many investment wannabees commenting on the actions of this company.
Zacks being the worse!
Last Edit: Aug 17, 2015 15:30:32 GMT -5 by christopher
Zacks downgraded again, and the share price rose again. Zacks has to be the greatest contrary indicator of all time. I'm noticing too that the short-term price is now over $8. Did Canaccord up their prediction?
"Applied Micro Circuits Corporation (NASDAQ:AMCC) has been given a positive Growth Style Score by Zacks Research. The Growth score analyzes the growth prospects for a company in addition to analyzing company financials. The score takes into account various measures of the Income Statement, Cash Flow Statement and Balance Sheet to achieve a ranking of A-F, where A indicates that the stock has the best growth characteristics likely to outperform the market.
Analysts tracked by Zacks have given Applied Micro Circuits Corporation a mean long term growth estimate of 22.5. This number is based on sales and earnings over the next 3-5 years, calculated on a consensus basis. On a shorter term basis, analysts have a projected price target of $8.25 on the equity. This is a one-year consensus target based on 4 sell-side analysts providing estimates. The firm with the most bullish sentiment sees the stock reaching $11 while the most conservative has the target set at $6."
Post by christopher on Aug 26, 2015 21:00:52 GMT -5
The quote below was taken from the last heading above, regarding the most recent downgrade from ZACKS.
" Most of the earnings estimates for the company (AMCC) have been revised downwards in the past 30 days, signifying negative investor confidence"
I have NOT seen ANY revised estimates to the downside. If anyone has, please post them. In fact, Applied Micro's CEO recently reaffirmed earnings guidance for Q2 to the upside.
ZACKS has a lot of balls to be posting this continuous shit! Shame on them!
ZACKS must have a relationship with the short position, they must!
Last Edit: Aug 26, 2015 21:01:42 GMT -5 by christopher
It's more than a little puzzling what their purpose is in reporting both up and down sentiments almost simultaneously. They're actually damaging their own credibility.
Post by christopher on Sept 17, 2015 10:24:25 GMT -5
right on phobos,
the wsobserver story above price in which they base their story is based back in August when the AMCC share price was in the $6.00 range. The latest closing price above is $6.56 and the date of the story is: September 17,2015. They are a month off!! ridiculous!!!!
