The story has changed with this stock, so I felt it time to start a new thread for her.
This company has excellent management that has been around for a couple of years, but now also has new top marketers including Edythe Verbesky (who was #1 at Newbridge Networks), new regional offices in the Pacific Basin, and new distribution deals.
Moreover, the market capitalization is currently under $100 million!
And best of all, the stock got hammered in October. Smith Barney unloaded a lot of stock for the tax-loss, and the momentum short-sellers have no doubt jumped on after seeing the chart.
My guess is that these short-sellers have no idea what the company is about, and are just following the momentum. This smells like the perfect "short squeeze" -- in other words, they'll have to buy and cover their asses when the stock bounces.
But the main thing we have to look at here for a long-term investment is that the frame relay market in general, and the FRAD market in particular, is growing by leaps and bounds, every minute of every day.
FastComm is the second-biggest FRAD company and the fastest-growing. Recently it was announced that year-over-year market share increased from 16% to 18%. Their products are the most cost-effective.
Basically, hyping this stock or hyping it down is okay, just please back up your hype with real fact. The more we can learn about this company, the better we can evaluate it as an investment.
Disclaimer: As of tomorrow, I will own 1,100 shares of this stock.
Happy investing!
~Ben |
