Hmmmm.... I suppose it is possible, but there are also some reasons why it could move into the 30's. The first reason is that unlike many IPOs, this one slept through the post-IPO period, and therefore was starting at a very low base when it took off. The second reason is that while their initial financials were not too impressive, they have posted two very good quarters, and the most recent quarter had very, very strong sequential license growth. The third reason why it could go higher is that they have partnerships with CMRC and SEBL, both of whom are growing very fast; these partnerships insure that SGNT will continue to grow very fast in the near future.
Basically it seems that all at once everyone noticed that this little company was posting some very, very good growth, and started recommending it at once. I was only long 200 shares before the last earnings report, but was so impressed that I loaded up the next morning at 10 7/8, and it seems that everyone jumped on behind me.
Yes, this stock will no doubt overshoot, and then settle back. However when you short this stock, you might look at what happened to EPNY to see how truly overvalued one of these companies can get before settling back. SGNT is probably more realistically valued in the high teens or low 20's, but it could also go well into the 30's before slowing down. I guess it's like trying to catch a falling knife in reverse, but it's your money,
Carl |
