Another one bites the dust. RACE shoud be next...
Xybernaut (XYBR) 1 31/32 -13/32: it was always really a question of when, not if, the shares of this wearable computer maker would return to the 1 1/2 level that was their starting point prior to an explosion to 12 1/2 back in May 1998. Today might not have marked the final chapter for Xybernaut the company, but it probably was the final chapter for XYBR the overly hyped stock. Leading this hype was the company itself, which claimed that 1999 revenues would reach $40 mln, even after Q1 revenues amounted to a paltry $654,000. The company announced today that Q2 revenues would once again be roughly $654,000, and that -- big surprise here -- the company would not reach its $40 mln revenue goal for the year. We mention this sad story (for investors) not to beat a dead horse, but to offer another reminder of how to avoid stocks like XYBR. From the start, XYBR has been a dubious investment proposition. Its product was unproven and its claims were fantastic. Last week, we wrote about Custom Tracks (CUST), another such story -- no product but plenty of wild claims about a great future. Investors should approach companies like this with a great deal of skepticism. And finally, XYBR offers another lesson in why you should never become emotional about a stock. Like many similar companies, XYBR's wild claims helped it to attract a loyal following. Without fail, every time we write about XYBR, we get a slew of emails criticizing our analysis or just plain ranting. Instead of attacking the messenger, these loyal investors would have been better served by taking a closer look at the company. Painful losses could have been avoided. - GJ |
