I can’t recommend strongly enough that we stop worrying about why one of our stocks is up or down 5%-10% in a day.
In most cases, no one has any idea why a stock moves on any given day.
By zooming in with such a microscope we make ourselves prone to all of the emotions and short term biases of the market.
Our long-term time frames and focus on business performance not daily stock moves is our advantage.
Don’t give that advantage away.
One of the key advantages we have as individual investors is our ability to ignore the element of time when measuring our performance. We have the luxury of not having to beat a benchmark every month or quarter worrying about potential investor redemptions from our fund.
Two of my most successful investments, United States Gypsum (USG) and YAHOO! (YHOO), simply required patience to achieve multi-bagger returns.
Now if you are looking for something productive to do there are three investor conferences happening this week that feature many of the companies we discuss on this board. The three conferences are UBS Global TMT Conference, Barclays Global Technology, Media and Telecommunications Conference, and the Raymond James Technology Investors Conference. You can get access to the webcast of your favorite company’s presentation by accessing the events section of the company’s investor relations website.
I do not want to name any specific companies as it will prevent me from buying shares under MF trading rules. Even the most highly volatile stocks offering today’s largest percentage declines are presenting. Some are in the highest percentage holdings of folks who post on this board. Can I be any clearer than that?
Frank - see profile for all holdings
Agreed that in most cases daily moves aren’t worth talking about.
However, in the case of AYX today, it is worthy of some discussion if any news can be found. I personally cannot find any news other than a Seeking Alpha update that mentioned the stock sliding and mentioned nothing new was reported at the investor conference that would cause the stock to drop.
I was hoping Andrew Left issued a short report. Those are golden buying opportunities in most instances.
The difference with today’s stock move in Alteryx is that it is weird. Everything else is not moving to any great degree and there is no news. So, yes, I think that could be worth discussing if anyone can find a “reason.”
A.J.
Agreed AJ. I don’t see what’s wrong with asking why AYX is down now over 11% for the day. Doesn’t mean we are panicking. Just trying to be an informed investor.
Not like it is the first time a stock like AYX crashes for no good reason. Hey, it goes up nicely for no good reason to as well!
This may just be “because”, or maybe after market we find out that they are filing for bankruptcy (which of course would have required them not to present today at Raymond James - so must be something even much worse than that). {yes, sarcasm - Musk won his latest libel suit for texting in the diver/submarine issue, precisely because you can speak figuratively and sarcastically on social media - so lighten up in speech - {yes, avoid college campus).
Tinker
Sorry for one liner but Gaucho Chris post feeling prescient. Wrinkle in the force?
“I’m not seeing anything Alteryx-specific to explain the move, I would point out that a lot of high-multiple names are getting crushed today, like Atlassian, Slack, Fastly, and Coupa, perhaps on fear of a potential economic slowdown,” Rishi Jaluria, a senior research analyst at D.A. Davidson & Co., told the Business Journal.
After the stock began its slide, Alteryx Chief Financial Officer Kevin Rubin made a previously scheduled presentation at the Raymond James Technology Investors Conference in New York.
“Someone asked if there’s any reason their stock is down 10% and management said no” at the conference, Jaluria said.
https://www.ocbj.com/news/2019/dec/11/alteryx-plunges-11/
Note: I don’t know how trustworthy this source is.
Nothing about the company. Here is an article on Orange County Business Journal:
Alteryx Plunges 11%
By Kevin Costelloe
Wednesday, December 11, 2019
Shares of Irvine-based data analytics software maker Alteryx Inc. (NYSE:AYX) plummeted 11% and the reasons for the drop remained unclear.
Volume of 3.9 million shares was twice the daily average as Alteryx fell to $95.89 per share for a market cap of $6.2 billion as of 10:30 a.m. Pacific time. The stock has fallen about 34% since a high of $147.79 a share on Sept. 6.
“I’m not seeing anything Alteryx-specific to explain the move, I would point out that a lot of high-multiple names are getting crushed today, like Atlassian, Slack, Fastly, and Coupa, perhaps on fear of a potential economic slowdown,” Rishi Jaluria, a senior research analyst at D.A. Davidson & Co., told the Business Journal.
After the stock began its slide, Alteryx Chief Financial Officer Kevin Rubin made a previously scheduled presentation at the Raymond James Technology Investors Conference in New York.
“Someone asked if there’s any reason their stock is down 10% and management said no” at the conference, Jaluria said.
Regarding the rotten stink around AYX’s bananas today, Monkey read this on his brokerage:
“Alteryx shares are trading lower potentially in anticipation of the company’s presentation at Raymond James Technology Investors Conference.”
This was obviously written by a gorilla made of metal with Russian computer chips for brains, right? Some kind of algorithm that approximates human grammar by searching for words that make sense and stringing them along even though it’s all gibberish as a whole?
Does this have even a droplet of possibility? Has a company ever given a conference talk where they peddle their own wares only to actually say “sorry, our product is no longer as good, so buy from our competitors?”
Monkey dislikes humans, but dislikes bots pretending to be humans even more.
But if this does turn out to be some wrinkle in the force, all of us here on this board should study carefully why this 11% drop was either a bunch fury signifying nothing, or whether we should have seen something obvious.
What a carnival!
Monkey (long AYX)
I might be wrong, but AYX lost relatively little in comparison to other stocks in the last 2 weeks, which are being discussed on this board. So AYX might just catch up today, because some managers still have to sell positions or whatever the reason might be.
This was obviously written by a gorilla made of metal with Russian computer chips for brains, right? Some kind of algorithm that approximates human grammar by searching for words that make sense and stringing them along even though it’s all gibberish as a whole?
It was on your brokerage site, correct? If this was in a trust-worthy financial news site it would have to have authorship, even if automatically created. (Ever see a news clip that said it was generated by Automated Insights? That is a commercially available bot). I’m not sure if your brokerage does the same. But it would not surprise me if they did some automatically generated stuff.
Check out automatedinsights.com if you are more curious. I learned about them at Tableau Conference 2018. They have a Tableau plug-in to automatically generate explanatory text in your visualizations. And they are used by lots of companies for this sort of thing.
Bill <who has grown sick of stocks that move +/- 10% for “no reason” these days>
Yea I also disagree strongly that you should be curious about 10% moves on heavy volume on a name like AYX, on a day that they are doing a presentation. If your not then you aren’t doing your homework.
So no one can find a thing, which either presents an opportunity, or to wait for news possibly after the bell.
I cut it down the middle and added some shares to my AYX holdings. So this is either a gift, most likely, or we will find out some news like some major person is stepping down, or like many have said already, some large fund(s) are taking profits.
Always worth discussing a drop like this.
Frankly with some of the discussions here, are you surprised really? Or is that for comfort?
I guess since August, the only ones who made money (at least temporarily) are some traders. If you would have held onto the stocks we are talking about here you would be a step down (more than 10%) from where you were at the end of July. They all went down. They bounced back and now they are going down again. Certainly most of the stocks discussed in here have had large gains from the beginning of the year until the end of July. Then the big money decided to rotate and those stocks are down while the general market is up in the same period.
We can buy more AYX on the account of the latest great quarter and on the account of the big drop today. Who really knows why it decided to drop 10% just like that today? Some money sold this one and did it today. AYX may go back up shortly and then back down. We buy now and sell when it gets back up to $108.23 because that is the fair value. Don’t like that? Sell it when it goes up to $140.27. Is that the fair value? Pick your number and sell it if it hits that point and buy when it has become ridiculously undervalued at $99.99? or lower. Do that a few times assuming the stock does not cave in the next few months and claim victory. Surely we are not traders here but we are glad we sold right (some) then and there and we bought when ‘everybody’ were talking gloom and doom’. We are glad because we are long term investors (long= a few months). However growth will slow down and we will sell then having made our fill.
You are right. Don’t worry about the day to day. It’s more like worry about the quarter to quarter. We will sell sooner or later. Isn’t it a bit normal to wonder when? Is it today? No. Is it today?.. are we there yet? Are we there yet?..
tj