The Curse of the High Flier Doesn’t Plague All Companies
By: 
From: James Cramer
Sent: Tuesday, November 08, 2011 10:36 AM
To: Nicole Urken
Subject: RE: Things i am considering
What did PCLN do versus the high man?
From: Nicole Urken
Sent: Tuesday, November 08, 2011 10:42 AM
To: James Cramer
Subject: RE: Things i am considering
High man (UBS) for this quarter was for $9.62 EPS. PCLN reported $9.95 EPS. While 4Q guidance was a touch light vs consensus ($4.90-$5.00 vs $5.12 consensus), is seen as conservative. Bookings up 56% YoY with generally positive European commentary also boosted name.
From: James Cramer
Sent: Tuesday, November 08, 2011 10:45 AM
To: Nicole Urken
Subject: RE: Things i am considering
I want to show how all of this works , Initially the stock was down hard, and then it rallied nicely in part because the initial reaction did not take into account the high man thesis.
The curse of the high flier. To see the doom played out, you don’t have to look much beyond the share prices over the past couple of months for Netflix, OpenTable or Green Mountain Coffee. These high multiple stocks have been cut as their growth outlook has not kept pace with the elevated expectations their high multiples should command. Netflix? Subscriber debacle. OpenTable? Lower seated diner growth trends. Green Mountain? Patent issues (notably raised by David Einhorn) potentially halting penetration opportunities along with slowing consumption trends.
