Repeat after me 200 times
Quality companies do not automatically translate into great performing stocks.. you need more than earnings....
There are so many examples over the years in the market it is not even funny. The first one I learned well from example was IBM in 1973, trading at $360 with $8 in earnings for the past 12 months. The outlook was tremendous, everything was hitting on all cylinders. 1 year later, however, the stock was sitting at $155, even though the earnings were now up to $12!! It took quite a few years (8) to regain the lost footing. At the time, IBM was covered by 3 brokerage houses. By 1981 they finally "got the message" and miraculously 8 brokerage outfits were covering them.
I hope it does not take a sharper rebuke to these Paul Allen stocks before a realization sets in that it is time to adapt. Sure, other stocks are down 50%, but that is of little comfort when they were the same price as GNET in October, but then ran up to $300.
Obviously, a low stock price is not good for anyone. It does not help the shareholders, and certainly not the company when they need a high stock price along with cash for MAJOR acquisitions, that the street will actually care about and pay attention to. The little stuff is easily recognized as much ado about nothing. Lack of news, equals lack of interest. Lack of interest equals lower trading volume, like over the past year. That directly impacts and stunts the stock price, makes it more prone to manipulation, which slows down the acquisition plans. It is like a catch 22.
One good thing though, and no offense at all to you, from a sentiment standpoint it may be good to see some more frustration here... for too long there has been an aura of complacency I have noticed on this message board mirroring that of the company. Very few really seem to question company strategies and instead just wonder in silence why the market has been rendering thumbs down since last April. No one says one cannot be wildly bullish yet concerned and questioning in a productive way at the same time. However, when everyone is just no more than a rubber stamp, like how it sounded at the annual meeting quite honestly, the company thinks they do not need to either change or at least re-focus on some problematic areas in a process of reflection. |
