Great Earnings so Sell the Stock

CLRK posted it’s third quarter earnings last night. They posted 8 cents vs expectations of 4 cents. Fully diluted of 5 cents. So it looks like they beat all around. Their revenue increased 21% to $17.1 million, their Gross margins are 56% and got another US patent. They expect to see revenues from the SC Johnson deal in Q4. They are increasing their guidance for Q4. All is well, right? No way! This morning an analyst at Merriman Curhan Ford (Obviously not the brightest bulb in the chandelier – pun intended) downgraded CLRK from Buy to neutral. Well we’ll see whose right in the next 12 months. Go CLRK.

In broader news, GDP in the US grew at 1.6 percent vs forecast of 2.1 percent. On the plus side the deflator fell to 1.8 percent from 3.3 percent forecast was for 2.8 percent. The deflator is the main inflation indicator in the GDP report.

So the market is down overall, CLRK is down 1.45% and SCUR is down 2.26%. CLRK was down over 7% at one point so it is showing some strength. Which is a good thing. Ah one to Q4….