On Demand

Trading Earnings: Saba Software, Inc. (SABA) – So Much Drama


With the Fourth of July right in the middle of next week, the number of companies reporting earnings is under 30. So, we really had to relax our rules to find anything close to company worth talking about in today's trading earnings.

Saba Software, Inc. (SABA) is expectedto report earnings on Monday, July 2, 2012.

Wall Street anticipates that SABA will lose 4 cents for the quarter. Top Equity News expects the firearms maker to report earnings that will beat Wall Street's consensus number. TEN's estimate is a loss of 2 cents - a 2 cent upside surprise.

However, TEN doesn't think earnings will matter. The company has a host of accounting issues and has been warned by the NASDAQ that SABA must meet the listing requirement to continue trading on the exchange.

Additionally, the company must submit its financials to Wells Fargo by the end of June, or it stands a chance of losing its line of credit.

One way or the other, Top Equity expects all these issue to be resolved when earnings are announced. If SABA meets the bank's, NASDAQ's, and Well Fargo's requirements, the stock probably pops, maybe even big-time.

Now, if they fail on any account, SABA is likely to leave shareholders sobbing as shares get whacked. Think about it, they get delisted, stock gets cracked. They lose the credit line necessary to run the biz, stock gets cracked. They admit their accounting practices are shady, stock get cracked.

They have to get everything right while only one thing needs to unravel. TEN would probably think about trading options on this one. Maybe a few dollars in the July 7.50 put options and an equal amount in the July 10 call options.

If you are patient, you might be able to pay close to 20 cents for each. Put in $100 bucks both ways and you don't care which way the drama plays out, you're just hoping for a big move either way - kind of like betting black or red, with a little educated guess.

Trading Earnings: Saba Software, Inc. (SABA) - So Much Drama is an article from:



Join In on this conversation, post a comment below.
No comments yet... Be the first to comment.

About the Author

Top Equity News’ goal is to provide investors with up to date news from around the world on stocks, options, forex, ETFs, and futures. In an ever changing global economy it is vital for all investors to have access to every available news source. At Top Equity News we bring you the latest, most relevant updates 24 hours a day from globally recognized sources. With this knowledge at your fingertips, making decisions about your financial future can be made with confidence.

This is precisely why Top Equity News was created, to PREPARE individual investors for anything that may be coming their way. The goal is to assist our members and visitors to be the most successful investors they can be, regardless of the market environment.

Membership is Free. Join Now in less than 5 seconds! Alternatively Join or Sign In here.