Dear Tim!!! I don't think so. Look at ENCAD, it used to be in the 40's, but due to the postponement of its earning (which beats the estimate when released), it went to the upper 20's, and now trades at 30-32 despite a better than expected earning, an analyst's upgrade, and a news release of new products.
In my humble opinion, stock market is a game of trust and expectation, once people feel deceived, it takes a long long time to recover the trustworthiness.
I think that the delay of USRX is mainly due to legal matter rather than technical. It already beta-tested the new software for a few months ago and its has been working flaulessly. The upgraded software, which I think at most is less than 1 Mgb can be posted to be downloaded from the Internet at anytime. The modem also depends on the ISP (thus USRX can ship the modem even if there is some minor bugs which is very normal even for DOS or Windows 95). When consumers buy the X2 they can't only test the X2 if their providers support it; yet, I wonder why USRX delays the shipment, because USRX, with all the news released concerning the postponement, shows that it is very aware of what will happen to USRS's public image.
It's very mysterious, because USRX's spokewoman is one of the best spokeperson among public companies (as far as I know comparing to IOM, CSCC,...). She always reacts at the right time (remember the conference call when the X2 technology was released a few months ago, or the earning of the previous quarter, USRX's did shoot up to high 80's).
With afterhour's trading in the 55, USRX will be a great opportunity to shorts for a short term horizon. Presently, I'm long on it, but it doesn't mean that I'm loyal with it.
Van |
