Jack,
You make some good points with respect to potential share price appreciation, however, with this potential also comes sizable risk in my opinion.
Personally I have very little money tied up in the DM sector anymore. I figure having my business focussed in this area is investment enough, therefore I put my money to work elsewhere.
So, typically I think about DM companies from a market share potential basis, and my gut is always quick to point out who I am competing with in the field and who I am not.
Now none of this may make any difference to a value investor looking at riding the appreciation wave until some balance point is found. Ultimately value stocks turn into growth stocks or the price stops appreciating rapidly enough to provide a return worth the risk...
Altris thanks to prior mismanagement provided new investors with an opportunity and existing investors with a lengthy case of heartburn. I don't know what the ultimate growth potential is for Altris, but I doubt it will content with the "biggies" as you call them, which suggests to me that at some point investors will need to step off the Altris elevator.
Lets also put this in perspective, their third quarter results were 1.6 million. This is a small business, and to grow bigger they will need more partnerships and something to fuel the growth.
I still think that the day of small DM companies is over. There's just not enough differentiation between the products, and small companies can't afford both the R+D and the sales/marketing expense neccessary to keep moving forward, and fast enough.
Just an opinion, and a fairly off the cuff one at that.
Best regards,
Mike |
