So far this year, the TSE has outperformed the US market. I would think that any discounting of TSE stocks will probably cease over the course of the next 6-8 months. I don't think that's our problem. I believe that QMS suffers from some of the same problems other small- and mid-caps suffer and that is the present success of the blue chips.
Canadian investors are by nature conservative and with the blue chips doing so well, there's really no reason for people to look at the next tier of stocks for value.
The only way for a small-cap to counter that is to have a long series of solid results AND some strong public/investor relations. This company is beginning to build up a string of solid results, but is still lacking in the IR and PR departments.
If you look over the chart, you'll notice that there always seems to be a nice spike right after results are released, and then the company drifts back down to the low $2 range, sometimes a bit lower. When results come out -- BOOM up to more than $2.5. If you played this company like that, timing it each quarter, you could make money.
What is needed is some momentum between quarterly financials. Some PR, some announcements, letting the public and investment community know about deals that are inked, etc.
Until this company gets it, then timing the quarters will be the best way to play this stock. Does it deserve to be a $4 stock? Yes. Will it be? Only when they figure out the IR/PR game.
GLTUA,
Marcman |
