Jason,
Consistency of the information is one criteria that should be built into the foundation of a comfort level when considering a microcap stock, esp. one that has had a history of financial problems. I am still watching this one closely, but I became very concerned when I found the stories coming from the company did not always seem to be the same. If the lack of consistency came as a result of honest mistakes, time will tell. I do know that I visited the company (which is more than I can say for a few brokerages who are recommending this stock and selling it by the truckload without even the knowledge of whether it exists or not) and I was impressed. I found that it really does exist and the people with whom I visited were , in my opinion, not the type of people who would try to dishonestly misbehave. I do think that eventually this stock should go up, but because the market has received bad information from whatever source, rogue brokers, misinformed employees, etc., the lack of reliability of target dates has in some ways influenced the attitudes of potential buyers. I know of at least one brokerage who was actively telling their clients that there would be a buyout of the company way before the end of last year and that the target price was around $5+/share. Some clients put hundreds of thousands of dollars into that story only to be disappointed. With so much money going into one position you would expect that a responsible broker would at least certify in some way that he/she was talking to someone besides the receptionist and maybe even make a trip to the company to make sure it exists. I do think that without news of some sort to keep the concerns of the loyal under control, we may see a <$1/share price again before the BIG DEAL is announced. If there is news then the price will remain up without too much more drift providing there is continued supporting information alluding to the eventuality of the large contracts, IMHO. |
