To the thread:
I have followed this thread for some time, and read many good posts and saw numerous friendly exchanges. I only posted a few times on this thread. Now allow me to assess the situation:
a. In late Nov 1998, Paulsen indicated that NETR was going to IPO'ed shortly, the stock zoomed to 27. He sold his holdings at near the peak. NETR was supposed to IPO in July 1998, but was rescheduled.
b. In early December Paulsen was on Squawk Box with Mark Haines, and he said IPO would be done in 2 months (that would take it to Jan 1999).
c. IPO was delayed and delayed, with the excuse of finding a CEO for NETR. Many of you were waiting for the news, and kept waiting. Paulsen failed to find a good outside person to take the helm of NETR. The Accountant (CFO) of NETR was annointed as CEO. The claim of fame of this person was that he previously was the head of a company that then went bankcrupt.
d. People kept waiting for the news of IPO. Everen was chosen, and waiting and waiting again. Then Everen was dropped because it was bought out. New ball game. Enter GKM, presumably because it is "cheaper" than the big names. Well if that is the case, you got what you paid for.
e. Now the news that people have been waiting for is finally here: IPO of NETR. RedHerring upgraded the IPO from WARM to HOT a fortnight ago. People had high expectation, and pay less attention to the fundamentals of NETR: subscription growth very minimal, question mark on management. A sad IPO of NETR and bad for NAVR.
___________________________________________________________
I am not suggesting that any of you sell NAVR or buy/hold NAVR. It is up to each person and his/her own money. I just want to point out:
1. there are 10K stocks out there, If you buy at single digit because it is cheap or want to average down, would NAVR be the "best" stock among 10,000 available stocks?
2. Would you trust Paulsen. His credibility is in question when he told Mark Haines that IPO would be in two months. Afterall he already got rid many of his shares at a price near or at what Bald Man from Mars paid for.
3. If you own the stock almost a year and suffer a paper loss, just remember that short term loss is deducted (up to a limit) against ordinary income, while stock held more than a year is considered L/T loss and applied towards L/T gain, and if you don't have L/T gain, only a portion of your loss can be used to offset ordinary income.
4. Today the stock drops 23% on 7 times average volume. This is not what people want to see. When the stock goes south, you want to have a contracting volume, not the opposite.
Good Luck to everyone, and may each of us invest our hard earned money wisely.
Best regards
Paul |
