| |
Cat,
My question was to you regarding your complete change in position on this company.
I ask again: Are you going to short it? If not, why not? A $4 target versus an $8 price is certainly short worthy, especially given your target of two months or less.
The conference call was mixed. The key is the NASDAQ listing. There is a real deadline looming here and they have to hit it.
You guys have to understand that if the company is dealing with NASDAQ as they say they are, then they have to be quiet regarding the status thereof. That's the rules of the game when you are applying for a listing.
If they can get a NASDAQ listing, this stock will then receive greater institutional exposure. Some institutions are flat out not able to buy companies like HMSK until they receive a NASDAQ Small Cap listing or NMS listing. If you heard the conference call, we had institutional players on the line. That is what this company needs and in a hurry. I agree with your assessment that we have a smaller window of opportunity to get noticed before the internet stock plays become exhausted.
Why would I tell people to buy this stock? This company should have a 1/4 to 1/2 market cap value versus HOMS as its competitor at a minimum. They came to the market via a reverse merger, not an IPO...if they can earn a "real" NASDAQ listing before being booted off the OTC, then you have tremendous upside potential.
What is your downside risk here? The company has had a good, steep, revenue curve from one year to the next. They are losing money, sure, but most of the internet companies are right now...it is the revenue curve that bears watching.
What is your take on the CEO? Led a good division/sub of Dole to profitability, took a pay cut for options here. Has tiered options based on the performance of the stock. Every 10$ increase in stock price he gets an additional 100k in options...
He has a real incentive to get this stock to perform. I like that.
What was your take here Cat?
Mark |
|
