Looking deeper into the situation. Stock is hitting real support at 23-25.5 (if you can't read the chart then just right click and click view image).
Early Bird Capital said that IRBT reported 4Q11 EPS of $0.38 on revenue of $130.8 million. “This compared to our forecast for EPS of $0.32 on revenue of $134.4 million versus the consensus of $0.32 on revenue of $134.0 million." Article Link
- With that being said it wasn't a total failure of an earnings miss, not enough to knock the stock down close to its lowest levels in 6 months ($22.46)
Now we look at the move after earnings hit and we see a stock that dropped after hours and tried to hold 30, then premarket the next day it tried to hold 25.5ish and has done so thus far, but I think if we wait it out we could get our ultimate entry around 23.11-25.5, which I know is large, but this isn't an exact science and this will be a swing trade with upside of 27-30+.
The Question is when do you get in then?
- I recommend a feeler soon, a starter size position so you can get a feel for how the stock moves (this could be 50,100, 200 shares).
- Act as if the stock will go to 23 and play and build into your swing position accordingly trying to get your average as close to our magic # as possible.
I have no position at this time, but intend on taking a position in the manner I just described over the next few days, depending on stock, mkt movement.