Paul,
I got the info. off of bloomberg. On Oct. 21st, "Go Wireless International" sued ATT and BCGI for alleged pilfering of prepaid ideas. They claim that ATT and BCGI stole trade secrets and that ATT failed to return confidential information regarding prepaid service. ATT denies any wrong doing, but did indicate that they are currently only "conducting test trials in several markets, with BCGI administering the trials". ATT also said that "the company is talking with companies other than BCGI about administering the coming national program." Does this mean that ATT will use BCG system and possibly let some other company administer it??? Or, does this mean that BCGI may not even get the entire contract or even part of it???
If the latter is the case, this could explain the ugly stock performance over the past few weeks. It may be that BCGI lost a good chunk of potential business. I certainly hope this is not the case, and seriously doubt it is. Only speculation. Also, I do not like the heavy volume sell-off, this may not bode well for a short term stock price rebound. If any of the above is true, and the news hits the wires, its a pretty sure bet that the stock price won't be going up. Hope I'm wrong, as I have accumulated too many shares in the past few days.
Tico
PS. Is your previous post of analyst recommendation from Oct. 28 or from today, Nov. 28? When did it hit the wires???? |
