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AVID stock is ready to go up?!?

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Re: AVID stock is ready to go up?!?

PostPosted: Thu Jun 25, 2020 7:51 pm
by blinddrew
James Perrett wrote:
Pete Kaine wrote:...although people were saying we were were in a bull market for too long at the start of the year and the bubble was long overdue for a burst, right now I really don't know what to think.

People have been saying exactly the same thing for at least the last 4 years. Trying to time the market is a mugs game. There's a saying I've seen that goes something like "Time in the market is better than timing the market".
It's only in the last two decades that there's been a period of 10 years that hasn't seen market growth. We'd recovered from that a couple of years ago, it'll be interesting to see what happens. But in general the longer you're invested, the better your return; it's why it's so important to get a pension fund going early. The returns might not be so great but they do stack up.

Re: AVID stock is ready to go up?!?

PostPosted: Fri Jun 26, 2020 11:42 am
by The Red Bladder
Right now is NOT a time to be holding stocks. The Fed and the other central banks are pumping QE money into the market and they are even buying company bonds! That is ridiculous. All they are doing by doing that is to prop up zombie companies like Avid that in a genuinely free market would have gone to the wall ages ago.

As for pension funds - if the government and/or an employer is matching funds and adding substantially to that fund, that's great - never turn down free money!

BUT if you are saving all on your own and putting that money in some kind of fund, all you are doing is giving that money to the fund managers and his/her buddies to share between them. After a few decades, they'll give you some of that money back. (And of course, if you break off the scheme prematurely, they are especially happy as that means they give you nothing or only a tiny fraction of it back!)

We are now well into bubble territory! There are companies out there that are out-and-out frauds. Companies that are being traded as public companies that have not even sold one nickel's worth of goods or services - and people are buying shares in them! Nikola went from $10 to $60 in two months - that's a truck manufacturer valued at $25 BILLION that has no factory and has not sold one single solitary truck and has no intention of selling any trucks anytime soon!

The news coming across my desk just gets crazier and crazier - and worse by the day!

Yesterday, it was Wirecard. Today? Tomorrow?

Re: AVID stock is ready to go up?!?

PostPosted: Tue Aug 04, 2020 7:55 pm
by DC-Choppah
Wow. Up to $9.25 today.

Q2 revenue is down relative to last year, but higher than expected.
Subscriptions up 65% at $16.4M

So the stock surges up 10%.

I have to admit that I regret being out for this cycle of the swing. But I have to stick with my plan.

It was trading at $5 in the middle of May and I was tempted. That would have been a return (if you sell today) of about 85% in 3 months.

The analysts don't seem to know what the company is worth, so there is a lot of slop in their valuation. Then when some big data input comes, the price changes drastically. But the error in the valuation is still large, so it can't sustain the new price level, and the cycle repeats.

Meanwhile, subscriptions keep going up, now at an accelerating pace. That causes some investors to keep getting in for the long haul which sustains the price enough to keep the cycles going. They assume that the price will eventually stabilize at a higher level. But rather than that actually happening, it does supply enough liquidity to keep the cycle going.

It's like a roller coaster with those pull chains every so often to pull you up the next big hill to sustain the coaster and keep it going.

Re: AVID stock is ready to go up?!?

PostPosted: Fri Aug 14, 2020 10:46 pm
by DC-Choppah
Roller coaster full steam going down the big hill.

Linearly straight down by 18% after the last peak 15 days ago.


I am still out. Hope that some of you shorted it at that last peak.

Re: AVID stock is ready to go up?!?

PostPosted: Tue Aug 18, 2020 11:15 am
by The Red Bladder
I remain very bearish about Avid Tech simply because liabilities exceed assets by over 50%. In other words, it is a fundamentally unsound company. It remains of course an excellent swing-trade as it is twice as volatile as other techs - and heaven knows they are volatile enough as it is!

The price is being pushed by one solitary trader at Impactive Capital LP, a NY 'woke' fund that lists ESG considerations (No, I had to Google that one as well - environmental, social and governance issues) and I am less than sanguine as to their ability to understand the audio/video post-prod market.

But being 'woke' attracts the idiot-money!

The market is awash with silly QE money. Retail gamblers (I can't seriously call them 'investors' as their only function is to lose money!) are giving investment funds their stimulus cheques and all that crazy money has to go somewhere. Add to that, the Fed is buying company bonds left, right and centre and you have a classic bubble. Warren Buffett's tide will soon be going out and we can then all point and laugh!

Kewl Dude told me "They're buying anything and everything. They'll buy the gum stuck to your shoe next!"

Kewl Dude and Blum are almost totally out, having both once been the largest shareholders, buying in at $3.50 and c.a. $5 respectively. Interestingly, Goldman Sachs bought $24m, giving them 6.6% of the company - but I doubt that is a serious investment strategy and more a case of spreading their bets.

Since 2019, R&D in most post-prod AV tech has slowed right down - with the notable exception of DaVinci-Resolve plus all the new hardware coming from Black Magic Design. While Adobe, Avid, Magix and others have been changing the GUI and adding plug-ins no-one really wants or needs, Grant Petty who owns over one-third of BMD is getting ready for an IPO sometime next year. That could prove an interesting stock.

The latest Media Composer release was, to be brutally honest, embarrassing. I felt sorry for the poor saps demo'ing having to pretend that new colours and looking just like Vegas was 'new and exciting!'

All this loose talk of increased subscription revenues (from F-all to a bit more than F-all) is a poor recompense for the blindingly obvious - revenues are down 11% year-on-year!

They are long since in default of the covenants on their massive debts to Cerberus Captital and one telephone call is all it would take to pull the plug and tell the Fat Lady to waddle on stage and give it full-wellie!

Re: AVID stock is ready to go up?!?

PostPosted: Sun Aug 30, 2020 5:25 am
by DC-Choppah
While on the subject of unexplainable companies, I would like to consider the company LYFT.

Every year, the revenue increases, and the earnings become more and more negative.

The investors are simply directly subsidizing the under-priced rides. So it will continue as long as people are willing to do that.

Lets say the true cost of a ride is $50. LYFT charges $30 and the investor foots the bill for $20.

The rider figures, gosh if they are giving away free money, I might as well get some.

But as this continues the stock simply drops and drops, and will eventually hit 0.

So why would anybody stay in?

Please short LYFT and make money. This is not a stock tip. It's like making a prediction that if you let go of a brick, it will fall to the floor.

If people are going to be stupid, you should at least take their money.