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Cheryl: before you buy more of this, I would advise you to wait for the "financials." I've looked some into this company and I remain unconvinced. For example: the PR person is either a fool or is doing a terrible job. He couldn't answer one question about this company, and suggested that "he had no idea when earnings will be out but probably not before they finish their web site (they are going to put their earnings in the web site). So when is the web site going to be ready? I have no idea. I called the president and no one there knew anything about when earnings might be released but the president, who was not available, would call me back. He did and left a message that he was sending me some materials. I'm wondering what kind of company has the president making personal calls to small investors he doesn't know. The answer is: one who is desperate to jack up the price of the stock. Then I looked at historical price and volume figures. Why would this company with such great prospects, and earnings, be selling for $1.25 on May 1, 1997, and then drop steadily to 1/8 on August 27, 1997. Who was selling every stock they could lay their hands on? My guess: the insiders who have been hyping this stock. The same seems to be going on now. The hype is on with statements like .09 earnings this quarter (which means they are going to earn 2 million with sales of 3 or 4 million? I doubt it very much.) The hype has all you small investors excited and you are buying, but, guess what, the price is not going up because the stock promoters and insiders are selling. I've seen this happen many times before with these bb stocks. I'm always on the look-out for a bargain, but when a stock is selling at 2x next quarters announced earnings, and the thing is actually not appreciating in price at all, just churning, it starts to smell like a scam to me. |
