Hiya Razorback,
First, regarding the apparent price fluctuation you have observed,
it is not really a change in the value of the stock as the bid/ask spread
has remained steady at ~.45 bid and ~.50 ask. Daily closing price quotes
are apparently based on the last sale, but for Joe Investor the bid/ask
(well, for a stock owner, the bid) is more relevant to the portfolio value than
the close.
Anyways, yes it is apparently a viable concept. At some point in the future,
when the machines come on line and prove themselves in the field,
it might be a good stock to buy. Right now, and for the past 4 years or
so, it has been the absolute worst type of investment to have. Since the
company has no source of revenue other than new share issuance, any idiot
holding shares will watch in horror and stunned disbelief as the
number of outstanding shares rise, and the stock price falls.
This only makes sense, since the only intrinsic value of this company is
it's _potential_ to have a net worth, positive cash flow, and general ROI.
And since none of the latter have occurred, but the _potential_ is
presumably still there, the market value of the company will not change
until revenue starts pouring in. Jack up the number of shares,
maintain a constant market cap, and you have depreciation in price per share.
If I had it to do all over again (or if I had the first clue about what
I was doing in the first place) I would _still_ be on the sidelines on this
one...
Good luck and don't throw money that you care about at this one until
a) the machines have been proven to work, and b) the company demonstrates
successful marketing in the form of large and frequent new orders.
I am not so concerned about (b) since I think there is a large
market for this thing. (a) has been put off again and again and again.
Do you really want to throw money into yet another "again"...?
-M
PS- at least we have some fun in this thread. I think I have gained back
the roughly 90% depreciation just in laughs. Thanks Janice! ;-) |
