- Violin Memory (VMEM -43.3%) shares continue to dive following abysmal Q3 results and guidance.
- Adding fuel to the fire are downgrades from IPO underwriters J.P. Morgan (Overweight to Neutral, PT to $5.50 from $9), Deutsche Bank (Buy to Hold, PT to $3.50 from $10), and Pacific Crest (Outperform to Perform).
- Deutsche analyst Chris Whitmore cited the Q3 revenue miss and weak Q4 guidance. VMEM is burning $27M in FCF a quarter and has not "articulated a plan to reduce it," which suggests that it can survive 5 more quarters at the going rate.
- Problematically, "Poor execution as a new public company & its high cash burn rate challenge mgmt's credibility with investors, its ability to raise add'l capital & VMEM's multiple will compress on substantially lowered expectations," Whitmore concludes.
From other sites
at Zacks.com (Mar 2, 2015)
at Benzinga.com (Feb 23, 2015)
at Fox Business (May 7, 2014)
at Fox Business (Dec 30, 2013)
at CNBC.com (Nov 22, 2013)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs