Hi Dep: You asked "why does it keep dropping?"
There are several reasons, all my opinions only, of course.
1. A number of us got involved with Jaws in February and March, participating in a 504K at 50 cents. The contest was supposed to start on March 15, and the company had projected revenues to begin in April. Had that happened, I'm sure that we would be merrily on our way. Unfortunately, we are about 4 months behind schedule. Therefore, what I think has happened, is that some of the original 504K investors have become impatient and are selling. Their time line was probably only 2 to 3 months to begin with and it's just not in their nature to hold for a longer term.
Am I one of those sellers? No, but of course I could be saying anything here so I guess you'll just have to trust me. Am I happy that the price is 50 cents? Of course not. But Jaws today is a far better company than the company that I bought in February. My time line was always about 1 year, so I'm willing to wait.
2. The extension of the contest probably hasn't helped the share price. Again, a lot of potential investors will be in a holding pattern, wanting to make sure that no one cracks the code. I wasn't overly pleased that they extended the contest and I expressed my views to the company in a very forceful manner. However, they are absolutely convinced that they generate more publicity and sales leads while the contest is on, so their opinion is that it is short term pain for long term gain.
3. Ultimately, the success of this company rests on their ability to generate sales. Contests are fine, media tours are great, press releases are wonderful, but the bottom line is that the company needs sales or the "threat" of future sales. If you want to get an idea about when sales should start, phone Mitch Tarr at 888-301-5297. I am hoping to get some kind of a forecast that I'll be able to post here. We know that they are working with a PDA manufacturer (Rob told us that during the last conference call) and if they can get that deal done, Jaws will have instant credibility.
4. The fact that they are a non-reporting company (typical of a lot of BB companies) prevents some firms from recommending the stock. They have filed all of the appropriate forms and they hope to be fully reporting within 2 months. Becoming a reporting company will give investors another level of confidence.
5. It's the summer, typically a slow period in the stock market.
Let's not lose sight of one important point. This product is real. SNC put it through the wringer and declared that it was a great piece of software. I hope that everyone has gone to the new website and read the March 1988 SNC evaluation. No one has cracked the code and I'm guessing that no one will. So we know the product is real and we know that the sector they're in is hot. Now they're working hard to generate sales.
Hope that helps.
bbruin "HLBS&DW" |
