I agree about what would happen if Wall Street starts to cover, but I'll believe it when I see it. BTW, weren't last quarter's numbers a penny ahead? If so, why is it at the same price it was at after the CFO resigned last October? With all of the good things, i.e. good quarter report in January, new CFO, etc., you would think that those things and the balance sheet would keep it in the 8's at least. Good news is just a chance for traders to get out or short. Just a lack of buyers, but plenty of short term traders. As long as they have the F and no major coverage, any good news is for trading IMO. When there is coverage, buying will outweigh the short-term folks. Until then, the chart is extremely unattractive, albeit deceptively, and the longer it takes for coverage, if there ever is any by majors, the more unnatractive this will look as an investment since it IS so stagnant.
There are several reasons for a pop above 8 that may arise, (like earnings being exceeded by a penny again) but again, I see selling into strength. Keep in mind they have debt, convertible debentures out (which brokers use in for projecting estimates, so it's already dilutive as far as new investorsare concerned), and they need to get money from somewhere if they want all these acquisitions that we've heard about for 97. When a company needs to raise funds, there are several ways to go about it, none of which excite me since it's either going to be dilutive or additional debt. A merger with another company has been mentioned, but that was supposedly with one of their American based subsidiaries I believe, as a way to drop the F. Although good psychologically, it's not necessarily good financially. It might be a great move, who knows. As for where I plan on putting that money instead,I've got an order in for 33 on JBIL. Best buying op I've seen lately. A local favorite :) JMO. |
