Talking about resistance levels of $2.00, $3.00, $4.00, $6.00, and $8.00 for a stock at $0.20 is absurd. That's ancient history with no influence at all on current values. There is no good news that could quickly propel this stock to the lowest of the values that you contemplate.
It does sound absurd, doesn't it...
What we are seeing is the throwing in of the towel of long term GMGC supporters... What is being missed is the steady revenue growth... Revenue for the first quarter ended March 31, 2002, was $2.5 million, up 39%, from the $1.8 million reported in the fourth quarter of 2001 and up 108% over $1.2 million reported in the first quarter of 2001.
Operating expenses have come down a bit... Operating expenses for the first quarter were $7.7 million, down from $8.2 million in the fourth quarter of 2001 and down from $8.6 million for the first quarter of 2001.
Guidance suggests increased revenues in the next Qtr with a cash burn rate of 5.0 to 5.5 million... Revenue in the second quarter of 2002 is anticipated to be in the range of $2.8 to $3.5 million. Cost of Revenues and Operating Expenses for the second quarter of 2002 are expected to be between $8.2 million dollars and $8.6 million dollars. Virtually all the cost increases will be associated with increases in sales staff and cost of professional services required to deliver revenue. Included in this projection is approximately $700 thousand dollars in depreciation and amortization expense. Net cash burn prior to any financings is expected to be between $5.0 million dollars and $5.5 million dollars for the second quarter of 2002.
With current assets of 14.0 million and current liabilities of 6.7 million, there is nearly two qtrs of cash burn available before another financing is needed... As revenues approach 5.0 to 6.0 million per qtr cash burn and the need for further financing should be diminished and possibly eliminated...
The technicals show that the stock appears to be putting in a bottom in the .20 area...
bigcharts.marketwatch.com
It would be foolhardy to suggest that all is well... But, with the technicals showing a potential bottom and the revenues starting to ramp up, GMGC is a speculation with improving odds of surviving and succeeding... As for 2.00, 3.00, 4.00, 6.00 and 8.00 price targets, time will tell...
Jim |
