Kumar, perhaps you misunderstood me.
I beleive that VRTY should do well in the coming year. They appear, at least
temporarily, to have the technological edge over everyone else at this time.
From a stockholder's point of view, one of the advantages of VRTY is that they only
have 10,800,000 shares outstanding. Phillipe was wise to use cash instead of stock
in his recent acquisitions.I beleive the difference between profit/loss on
a per quater basis may be less than $1 million in revenue. If they had only
managed to sell $14 million instead of $11 million in Q4 then this stock would
no doubt be valued at $12/share instead of the current $6+
Using the above figures I think that we (as stockholders) are very close to
breakeven/profitability. I keep a very close eye on intraday trading and it
appears that at least one institution agrees with me. I must say that I recently
lost some money on puts when they came out with their sour revenue figures and
have been spending quite a bit of time trying to figure out why basic valuation
fundamentals do not currently apply to VRTY. With revenue stabilizing around
$44 million a year coupled with the huge amount spent on R&D and the accompanying
losses, IMO VRTY should be about $4 1/2 a share right now. So why isn't it?
It appears to me, based on the almost daily binge of after hours trading, that
at least one institution is artificially keeping VRTY in the >$6 share range.
Maybe Jack has something, also recognized by the phantom institution, with his
appraisal of the technology. Perhaps VRTY is ahead of the curve at this
time. I will be buying in after the formal EPS release and look forward to a
profitable year.
I seriously doubt that they will go below $5 share or they would already be there.
Having said the above, I must also comment that I think $20 a share is a stretch
unless VRTY can show some at least 3 quarters worth of consistent growth. |
