Sherman,
I guess the way to invest in this stock is to ask the following question of oneself: businessman or consumer, what kind of person would use this service? Make a list over the course of a few days or hours (if you have a long attention span); guess what segment of the population is represented by that list in MCOM's markets @ $350/modem and $30/month. If say, a standard data services industry price to sales ratio looks small compared to the resulting number, go short. If it seems like a larger number, go long. This is oversimplified, the key is a gut feeling -- which would be stronger for deeper analysis (margins, EPS, etc.) -- that the market is big or is not. Such analysis might also help with entry and exit points, eh? DSL and cable modems aren't cheap, either, and $30 bucks is a good deal whether you're fixed or mobile, for that kind of speed. But wait, the R2 will be more expensive, won't it? Whatever the price is (not more than $50, I'm pretty sure), use that price. Getting sleepy and too lazy to look it up.
You know some users of this service and are one yourself, right? What do you and your fellow users do? How does Ricochet make your lives better? You're a customer, and you know customers. Speak! Enquiring Doers of Due Diligence who Drink Dewars want to know!
Cheers and Good Night, Tuck |
