Michael -
I guess your general point is that you are genius for getting in at the IPO, and that it's been a wonderful stock since then.
I guess we all have different ideas about what characterizes a wonderful stock, and it really depends on your perspective. Certainly if you are a trader, USWB has been wonderful as it's provided great opportunities to sell the excitement and buy the backlash created by insider dumping and running the share currency presses for acquisitions.
However, if you are a long term investor, the jury is still out. It really has not displayed a level of consistency that would give the more sophisticated long term investor comfort. Remember that post IPO this stock shot up to $38 only to return to it's IPO price a few weeks later. Over time it worked itself back up to the 40's, only to return to the low 20's in rapid fashion recently. During this entire period insiders have consistently sold shares to the public.
Now, that history might make you feel all warm and fuzzy as a USWB investor, but it doesn't cut it in my book of long term investments. It may prove me wrong and be a good long term investment, but for now I must call it a trading stock.
There are many stocks over this same period that have provided the same level of return with much less volatility and risk. But, if your main argument is: "the stock is up since the ipo, therefore Michael Cummings is a genius", there's not much to discuss.
cheers. rick. |
