PLAY THE GAME

XRTX got killed today, taking a near 7% haircut, after it raises its outlook for its next quarter by more than 40%, no less!. Alright, they missed by 2 cents (0.85 vs 0.87 consensus), and the market fell, but the blame has to be placed squarely at its management. It raised its Q2 outlook during last quarter report by 55% from consensus, and the stock jumped by 18%. But they forgot that they not only have to promise, but they have to beat the number, or else. Hadn't the management learnt game of "UPOD" (under-promise, over-deliver)? They could, and should have, raised the guidance by 25% and beat the raised guidance by another 25%, and the jump of the share price would have sustained! Now they are back to square one, the same share price before they raised the outlook, despite the significant increase of earnings. Now, I hope the management has learnt a few tricks, and played this game as it should be played, and I hope that they have left some margin on its 40% increase of outlook on its Q3. More importantly, they better beat it, or the 40% raise would have resulted in a 10% down of its share price!