You could start all around $60-80 a share. The stock is trading at 25 times its 10-year forward earnings estimate. Its market cap has more than tripled to more than $5.2 billion.
It is up 2.7% for the year.
Why are analysts so bullish?
A lot of hedge funds are betting high on the company, which has been struggling with problems, including declining demand for its video products.
Last week, the company said it would begin rolling out an internal software update to try to limit demand for its phones.
Its shares have surged more than 500% since the beginning of the year as the company sought to shore up its market position ahead of its second-quarter earnings report on March 30.
What does it have in store?
The first quarter’s results will be used to decide how big to push the company into the future.
Analysts expect it to announce a big turnaround plan — possibly including buying back its shares to take shareholders’ money away from its debt. It could also announce a “restructuring” of its business, including buying back a large portion of its stock and laying off thousands.
Why is the stock so low?
Shares are so high because they are in such a good place with no apparent danger. Its market cap is more than $5 billion. Its value is also based on its stock price. This makes it difficult to value the company when it trades at a discount to its value. It also makes it difficult for investors to believe its price is based more on hype than reality.
What about its management?
There has been some speculation about the future of CEO Richard Gelfond, who has been at the helm the past year and a half. It has also been reported that Gelfond is being investigated for possible insider trading.
What’s the problem?
Companies usually have a strategy in place to manage the stock price, either by moving stocks higher or selling off shares to cover debt. The strategy usually means that the stock will move toward its earnings estimate. If the stocks have fallen too much in the past, those earnings can be a reason to pull out of the stock.
But there’s no such