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Strategies & Market Trends : Speculating in Takeover Targets -- Ignore unavailable to you. Want to Upgrade?


To: richardred who wrote (3980)7/13/2015 10:02:10 AM
From: richardred  Respond to of 7159
 
RE-Twitter

Short Sellers Not Buying Into eBay & TwitterShort interest in this micro-blogging service provider retreated more than 9 percent during the period. The around 20.80 million shares short at month's end, the smallest number of shares short so far this year, was more than 4 percent of the float. It would take about a day to cover all short positions. Speculation about a potential buyout of Twitter continued during the period. The company has a market cap of around $23 billion. Note that the return on equity and the operating margin both remain in negative territory, but the long-term EPS growth forecast is about 69 percent.

Of the 39 analysts polled, 15 recommend buying Twitter shares, while only one rates the stock at Underperform. The analysts' mean price target is about 24 percent higher than the current share price. Note though that shares traded higher than that target before the sell-off in April.

Twitter's share price ended the two-week period more than 4 percent higher, though it has pulled back since. It is now down more than 2 percent year-to-date. Over the past six months, the stock has underperformed the likes of Facebook, Google and LinkedIn, as well as the broader markets.

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