maaad, (almost forgat an "a")-g- Yes, "reported" book value won't drop until next Q reprt, but the "real" book value declines daily if I'm right.-g-
If you are just long, due to a bottom fishing/money flow startegy, this means you are an extremely short term trader on this stock. Correct? And if so, I can't argue about the strategy, although I don't think it will pan out. But if investors are long this stock for a longer term, fundamental reason, too date, not one long story has come out. Strong short signal.
Fundamentals I think you will agree look very bad, with no defined strategy by the company (operative word DEFINED) for a reversal of trend.
The recently hired President of Retail, and the Vice President of Retail Sales have been fired, and/or resigned. WHY? This is the strongest short signal for me, because BOCI claimed this was the answer to growing the business, now it seems in trouble.
I now have heard from two executice search companies that Rockwell is setting up a retail division. I cannot confirm the product category Rockwell is setting up this division for, but rumors (strong) are that it is modems and related communication products. Rockwell does have a better, more recognized name than Boca Reseach, and this would make sense. Rockwell's resources are obviously much larger than BOCI's.
BOCI, is a tiny company. 300 employees. I just don't see them competing with the giants. So far, its me too products. Where's the critical mass in any area?
They still have not written off the accounts receivables of 2 million dollars from the German firm they were going to buy to my knowledge. They are not buying them, because they are in financial trouble. Will they be able to pay?
Their sales to the telcos, Ameritech I believe are with relatively low margin products. (this is a highly educated guess, I have no solid information)
I think the bottom fishing already took place when the stock was at $5. When sales are declining and inventories are rising, book value tens to drop pretty fast, as I 'm sure you know.
I also talk to several people in the industry, buyers, and store managers for example, and my conclusion is the down trend is going to continue.
Unless we are surprised with a killer product, this short is solid IMO. Good Trading. LF |
