Sultan:
There was a wide-spread belief, news analysis, etc. on Thursday that NOVL would fall like crazy. Many on NOVL thread were very mad and before sleeping on Thursday placed their market orders for whatever they could get. The stock dropped to 7.5 from 8 on Friday, but it went up to 8.25 by the close.
I read the Barron's article in detail and posted my objective view of the author's analysis as very biased and wrong. The stock may fall as a result of this article because of investor perceptions not objective evaluations. But, like in the case of NOVL, the stock may rise in value too if more objective investors step in. If the stock remains depressed Monday, it may still recover and even surpass the current level should the earnings turn out to be strong, especially given that FIBR is the fastest growing in CA.
I agree with you, though, that FIBR should appoint some respectable individuals to its Board and a good accounting firm as the auditor. They have taken steps in this direction by removing the controversial Witz. Their accounting firm is also very reputed. But, they should move fast to appoint more visible directors appropriate for a fast growing company.
Sankar Acharya |
