MR beat GAAP EPS by 1 cent and Sales beat was by +$4.71 million......
Why the EPS was beat by only 1 cent while Sales jumped so much......I am glad you asked....
MR TOS has gone UP by 6.84 million share...so the profit needs to be divided by 113 million share vs 106.16 million before.......
Their margin was also less than Q2....Q3 55.1% vs 57% in Q2......
Why margin is lower......another good question......As MR is growing and opening Sales offices in many many countries...their operating expenses are higher than before.....these sales offices are necessary to grow future business internationally.......
MR is also reducing capital expenses by 80 million RMB...this will give upside to EPS going forward......
CC should highlight these points which I have deciphered......
MR is on high growth Sales mode and need to spend to keep growing......
Market took a major tumble...thanks to overbought conditions...which became oversold by close......Talk of sharp & swift correction.......
Market internals were extremely negative accross the board......which tells me that we stabilize right here........
Jobs report will be a non-event...which will give market some traction by close.......
My portfolio remained unchanged and was down 1.6% compared to Nasdaq which was down 2.25%.....thanks to my portfolio mix....
Techs are working big time.....and the leaders were down much less % wise than 2nd or 3rd tier companies......
Do not hesitate to take loss and jump on strong techs...will be a smart move going forward....$$$
Good luck on friday the 2nd of november.....
BLOG does not give buy or sell.
Saleem
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