2. Vocus Croaks
Vocus (VOCS) missed Wall Street estimates by one tiny cent Tuesday night, causing its stock to fall almost 40% to just over $8 the following trading day. Once again, a single, slim penny of underperformance spurred a massive shellacking in the shares, even though the company's earnings were actually up 350% year over year.
Come on guys! You're a public relations software company, or at least you were until you started making this cloud computing push. You should be able to spin those results to your advantage, that's what you folks do!
All right. Maybe that's not exactly what blew up the stock. They also provided lousy second-quarter guidance. (As to why they decided to provide the Street a forecast "for the first time" on this less-than-inspiring report, we also have no idea.) But still, one would think they had the wherewithal to hoodwink the gullible pencil pushers on Wall Street a little better. Those folks will swallow anything. Heck, both FBR Capital and Stifel had buys on the stock and only downgraded it after it blew up!
"We remain focused on continuing our expansion beyond PR software into the much larger cloud marketing space which we believe will deliver the next phase of growth and success for Vocus," said Vocus CEO Rick Rudman. Right on Rick. You stay locked on like a laser to your business. Don't watch anything else, especially the 70,000 Vocus shares you bought in the open market for $13.93 each in late February. "I bought stock because I believe in the vision, the strategy and our ability to emerge as a market leader in the cloud marketing space, which is enormous," said Rudman during the conference call. "So there's plenty of emerging success stories out there of other companies that are building a lot of value there and we believe that we're one of them." There you go buddy! That's the spin we're talking about!
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