Q2 sales consensus is way down - wall street reacting today to this news

Q2 sales consensus is way down - wall street reacting today to this news. Will take time for new sales rep structure to work itself out. Have faith

 

The layoffs were needed as sales revenue is declining and below consensus as mentioned above. Sucks big time for the reps let go as they are really not to blame. Management is for various reasons (I am being polite here towards mgmt.).

As for investors, the layoffs are not being seen by institutional investors on Wall Street as a positive. Especially in light of the fact the they now understand that Q2 sales will be below consensus on the Street. Thus why today stock price is tanking. It has nothing to do with all of the silly theories being mentioned over at StockTwits. It is cut and dry. There will not be a buyout until at least 2017 as the Brean Analyst stated (for the reasons she stated). Good news though is there will not be toxic financing to address the large debt the company has. So it is a good long term stock to hold for a year or more - as long as the company can pull itself out of the financial mess it is in right now. The layoffs may be a start, but a lot more work is needed. Have faith.

 

This stock is NOT a long term play. The only people making money on this are DAY TRADERS buying in the high . 40's & .50's and selling when it moves up a few penniest... then they repeat this over and over. If they buy 100K shares, for every penny it moves, that equals $1000 easy profit.

 

Institutional ownership over the past 30 days has gone down from 72% to 58%. As of July 11 reporting figures.

 

Our favorite analyst at Brean Capital in her (yes HER) email to me stated that as long as Pernix Q2 sales is in line with Wall Street consensus, stock price should be okay (read my other thread in which I posted her (yes HER) email responses.

However, should Q2 sales not meet Wall Street consensus, the stock price will tank be time (as most stock prices do on poor earnings). This is why investors should never risk staying in a stock the day of earnings unless they know for a FACT (hope is not a fact) that earnings will be positive as it relates to Wall Street consensus.

So for Pernix, be very careful as these layoffs would not have occurred at this time if sales was very good. Now I have no idea what sales are like (maybe some of the sales reps can answer this question). FYI, that I have been day trading for profit this stock as I own over 100K shares. So I want only good things for investors and ALSO for the sales reps who have been going through a lot of tough times lately. They deserve some success and support from Pernix management (and also a thanks from us owners/investors for their hard work).

The WS Grinder

 

Why are you guys posting all your BS here. Nobody reads you on stocktwits? And why are you interested in what a low class analyst says. If you google her you will see that her success rate is 45% lol. Better odds flipping a coin.

 

To answer you question, The Grinder posts here because he got banned on StockTwits. I can only speak for myself though, and not the others.

I try to be informative, educational and respectable. Especially now with the sensitive layoffs that occurred.

Thanks for asking that valid question.

The WS Grinder

 

with record Tx numbers in Q2 how could they possibly miss the earnings expectations?

 

Unfortunately it is no where close to record numbers. Thus the cancelling of the August 4th earnings release.

 

Folks, lets be honest with ourselves. They tell us we had record sales", but we are giving away these products! $0 copays, PPDirect program etc does not put money in the bank! Sad but true

 

They never set an august 4th earning release...so how can they cancel it?

 

Copays have very little to do with the bottom line. Dr's don't get rich off of collecting patients Copays for visits, do they?
The company is in disarray, but they may or may not find a suitor to buy them at this point. If they do sell it is going to be for Zohydro while Silenor and Treximet will be thrown into the mix. Management is going to tell you that nothing is wrong, but there is a reason that they are paying a bonus for employees to stick around until next year. Don't believe, trust it, and do what is best for YOU!!! If you aren't looking for a job, you better at least be updating your resume, saving rankings, and field contact reports. Because unlike the employees who received severance on the 1st round of lay-offs, there may not be enough severance to go around a second time. After all, this is business and your managers are only going to look after themselves when it comes to the final hour. Sales teams are always the last to know and they are expendable.

 

Agree, Record RX volume has little to do with profitability when we are giving product away!!

 

Wall Street grinder you piece of elephant shit. 98% of the posts here are yours. 100k shares isn't that how many you claimed to own. So transparent and stupid. Go fuc yourself and stay away from this board. Fuck off worthless excuse for a human being

 

Wow you clearly don't work for Pernix. I'm surprised you actually took the time to come up with all this like a big boy. Good for you little man. Now go back to stocktwits with the other monkeys.

 

Wall Street Grinder= Cooper Collins

 

I'm proud to say that I do not. Seems like no one at Pernix knows when to throw in the towel and admit defeat. But good for you. Sales reps are not supposed to take the 1st, or 2nd, or even the 3rd "no" when on a sales call with a possible writer. Your so immune to rejection that you can always find the good in the worst possible situation. Envious!! Now, how many PPD RXs do you have this week?

 

I guess you shorted the stock at 0.40 thinking you were smart and now your pants are full of doo doo. Look at the marketcap, how can anybody with half a brain think that the company is worth less than that, even with its actual issues that are being fixed btw. Even my manager doesn't know what's happening, but we all see that things are moving in the right direction. Q2 will show a lot but its really Q3 that will change everything.

 

i wouldn't rely on your manager for anything!! They will throw you under the bus in a heartbeat. It's Pharma and you sound like a newbie.
So, you'll see Q3 results in...Dec. Have fun working the holidays because there is no way the board is going to approve paid holiday pay since Q4 results will be out in March...right around the time your retention bonus period ends. Hmmm..