Re:UTCC.....Let's get some things straight here...
First off, this news, while it was not what I was hoping for, but it should have been expected. The stock has been played up by traders BECAUSE the company is shifting it's strategy into more profitable lines of work. They have been in a deteriorating business and have been using their resources to build into a new line of work...or however you want to say it...see this website below for what they have been doing.
thestream.com
So, it is only natural that this shift is going to cause downtime. That's the way it goes. The revenues from the old line of business that they are discontinuing will not be missed, because the pricing pressure makes them not worth having. You know the old saying, if you are just gonna lose money, don't do it...you might as well go fishing and lose money instead of working your ass off to do it. This guy has a few things to say on the subject.....FWIW
messages.yahoo.com
If you look at the multiples that companies like NTOP command, it's easy to see why investors have bid this stock up. The question is....what kind of investors (traders) own this stock? Did they buy it in hopes that the company was on the right track by shifting their strategy, or did they buy it hoping for a pop? If they were buying it just looking for a pop, then the stock is going to tank today...simple as that. But if they have been buying the stock because of this shift, then today will be viewed as a buying opportunity.
Personally, I figure my account will take a bit of a beating today...because it seems to me that most of the people in this market are buying things just for the momentum or out of sheer greed. They will likely sell the stock to market makers that drop their bids out. That's just the market we are in. I won't tell you how to play the stock, but I will tell you that the float is rather small and approximately 1/4-1/3 of it has been sold short. Will they use your stock to cover today? I'm thinking of putting mine up for sale over 20 today for a while and just watching.
My reservations about this company?? I think some of the upper management takes in rather steep salaries, and this expected loss takes a nice chunk out of the company's cash position....that's about it.
So I'm sorry if you or anyone else takes a loss on this stock as a result of my posts. I am not the first to bring it to the board, and I brought it here originally in the low 13's as a position play.
If you joined SI over the weekend just to give me a hard time about UTCC, then you have wasted your time and money. If you have been following my posts as a lurker for some time, then this little setback is just a piddly little problem and you should have made more than enough on my other picks that would enable you to sit back and see UTCC open at 0 and not care. This stock should not comprise more than about 10% of your portfolio if you are practicing proper assett allocation....so if it gets cut in 1/2 today, then your account would be down about 5%....Woopdedoo. If you "loaded the boat" on this stock on my suggestion....then shame on you and you should be willing to accept the responsibilty for poor trade management.
I own some....and I will take my beating if it comes...and I don't blame Kim, or anyone else who has recommended this stock in the past. Best of luck with it...I hope it works out for you. Just think...if you had bought NSATF on my rec...you would be up about 600% on that one right now....and there have been many, many others. So I don't feel bad about missing one now and then. |
