Mike, You asked for my opinion on the stocks price and here is my thinking:
MIOA acquired FPII in October 31, 1996, but the stock did nothing and rightly so. Then news comes out in early January stating that more physicians have been added to the FPII network, blah, blah, blah, and that expenses have been cut. This is also the time of year for record investment-new year, time to evaluate investments over holidays, tax season(anticipated returns), etc. The stock jumps, with no real fundamentals on the table-no realized revenues, no profits, etc, but someone was buying. Then it settled to around $2.00. Why? Your guess is as good as mine. It hung there till MIOA began talking about first quarter earnings. Here is the typical hype(however, it was the truth). Around early April, the stock began a 3 to 4 week ride of ups and downs and eventually culminated in the rise to $3.06, because several people felt ONE quarter was enough to send this stock to the moon. For whatever reason those people have gone away slowly, all the way back down to.....around $2.00. The people who bought this stock on its way to $3.00 probably were the ones expecting the miracle and not those of us who have chosen to wait and wait(I could be wrong). Anyway, we all got what we wanted, but were disappointed to see the stock not rise, so we hold, but the others went looking for miracles elsewhere. They will be back in, oh, say the next three to four weeks as earnings talks begin again. They will again be looking for the miracle bounce and quick double digit gain.
In the meantime, we are back at $2.00. Why? Again, your guess is as good as mine, but if the stock was here in January based on pretty much nothing and now we have one quarter(the first ever) of profits, I see no reason why those who supported it at that level before, will leave now. My "current" crystal ball sees this as the current base level-a buy at around $2.00. As of July 13-17, the season of earnings talk will probably begin for MIOA and you can bet on a roller coaster up to around $3.00 again. This time, with that big boy having sold a large chunk of his holdings out of the way(assuming that report was accurate), the next big resistance is up around four. So MIOA could break through $3.00 based on less of a miracle this time. Less in the sense that it will be a second, consecutive quarter with positive earnings(lets hope). This will obviously make the stock more attractive, but not necessarily a buy order from Merril Lynch. If positive results come out, I think the climb to up to my last estimate will begin. Remember, at this low level, there will be lots of ups and downs from shorts(by the way, you can short ANY stock) and the quick in and outers. If you have nowhere else to go with the money, then holding or buying more would be wise. I plan to start buying around July13-17 in anticipation of the runup that will occur as it did last quarter.
This is what I see.
Who's going to the shareholder's meeting this month?
Miller |
