Hi Jim...
Thanks for the post. Don't get me wrong, I'm very long here, and really love the long term concept of the company, I just believe in the intermediate term the price will struggle, with many tradable swings, and the gaps will invariably fill like they always have here.
Revenue has tripled, but I think it is important to remember that there are several significant non-recurring one time fees included that won't be seen again in those figures.
Losses per share is a bit mis-leading also as favorable conversion of CP shares is factored into that equation... essentially GMGC is raising cash and making money through the issuance of shares of stock at this point...convertible preferred shares to be exact, not by selling service or product. Any long term shareholder here will quote chapter and verse on the pain from that stuff.
I know, I know, ... no pain no gain <ggg>
I'll be the first to cheer if we realize any dramatic price appreciation from here... then I'll sell into it if the gaps haven't been filled yet, and buy back lower still. For now I think we will continue to trade on the back of the COMPX, and the real question is, will the comp rally here.
The prudent move is to get defensive, Take a look at the increases in volume on the down days this month that are greater than the previous session...that is distribution. Any month that shows four or more of these distibution type days says "be careful", preserve capital.
I think the close higher than the open today is misleading, it was still a down day on greater volume than the previous session... more distribution and a bull trap rally that was probably induced through short covering.
stockcharts.com[L,A]DACLYYMY[DB][PB50!B200!D20,2!F][VC60][IUB14!LA8,17,9!LF!LH5,5!LI5,5!LG!LC10]
I think the naz will take a big hit sometime into oct., GMGC will follow, and then both will regroup and build upward. If I am wrong I still have my current longs to enjoy. That's my play and I'm sticking with it until I see some underlying changes in the index that indicate otherwise
Love the company long term. I still think they will be one of the greats, but my days of impulsively buying on what I thought was a great story only to miss out on lower prices is over...finis!
Thanks again for the post. I always enjoy the study of other points of view.
Have a great weekend,
John |
