I think AmEco will trade between 7 and 8 1/2 until it starts to get serious attention on Wall St. Until that happens, the short-term traders will probably bail out once it rises above 8. This may keep the price low temporarily, but it won't push the price below 7 and it won't do any long-term damage to the stock. AmEco is working on getting the word out. It won't happen overnight. If a major Wall St. firm starts to cover AmEco, it will probably issue a buy or strong buy rating. There are currently only 2 analysts following this stock, and both are with regional brokers. One analyst rates AmEco "buy/hold" and the other has only given the estimated EPS. IMO, if a national firm issues coverage of AmEco, the stock will begin to rise and will attract more attention. Once that happens we will start to see the price rise to a more reasonable PE.
I don't know why you think AmEco will never have a high PE. You keep referring to AmEco in the past. Just because it has a historically low PE, doesn't mean its price will never rise. It has always had a low PE because no one on Wall St. follows it. The story behind AmEco is not in the past, it is in the future! To all of us patient enough to wait, I think we will see our investment pay off.
Michael, I'm curious to know what great stock you have found to make you want to sell AmEco. There is virtually no down-side risk and the up-side potential is enormous! The CEO has set a goal of 1 billion dollars in revenue by the year 2000. If AmEco can reach that goal remains to be seen, and I am skeptical. Buy, the CEO is sticking his neck out to promote this stock and it will be fun to watch him acquire more companies and work on increasing shareholder value. You must still be interested in this company if you are still following this forum. Go with your instincts, and since it won't do you any harm, I hope you are wrong :-)
Best of Luck,
Seth Weisinger |
