Will Pandora Rock In 2013?

E = Equity to Debt Ratio is Strong

The debt-to-equity ratio and balance sheet for Pandora are perfect. This is important because Apple (NASDAQ:AAPL) is looking to get involved in this arena. Whether it’s Apple or another large company looking to expand, it would be much easier for that company to buy a fully functioning operation with a stellar balance sheet than it would be to build that operation itself.

T = Technicals on the Stock Chart Are Weak

Pandora has lost nearly half its value since its IPO. Investors are furious, but shorts and ecstatic. These types of trends tend to last longer than anticipated. Therefore, it wouldn’t be a good idea to try to pick a bottom. It’s best to look at a stock’s movement just as you would look at the broader market. You shouldn’t try to time the market, and you shouldn’t try to time a stock.

Since its IPO, Pandora has vastly underperformed SIRIUS XM Radio and Cumulus Media (CMLS).

At $8.97, Potash is currently trading higher than it 50-day SMA, and it’s trading lower than its 100-day and 200-day SMA.

E = Earnings and Revenue Are Improving

Pandora has been bleeding money for years, but if the upward trends in revenue and earnings continue, then this company will be profitable soon.

When we look at last quarter on a YoY basis, we see an increase in revenue and earnings. We also see a profitable quarter. The key is sustainability.