I think GOAM is a take over target. Wireless is consoliding and GOAM is too small a player to compete nationally.
I seriously doubt that. This company has never made money, and never will make money. They own no valuable intellectual property. They have done two reverse stock splits since May 2004!!! The stock traded 9X its total outstanding shares on Friday alone!!!!!
This is a wonderful stock to sell short at these prices and higher if a borrow is available. Most cannot get the borrow. To be fair, the only positive I can say is that they have about $4 per share in cash but how long will that last with the way they bleed money? LOL.
Best wishes
p.s. this article explains it well, especially the last several paragraphs:
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Easy Come, Easy Go?
By Lawrence Carrel Published: November 12, 2004
StockCompare
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GoAmerica (GOAM)
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Share price as of last Friday's close: $2.55
Share price now: $11.78
Change: 361%
Last time this high: May 12, 2004
52-week high: $56.80
52-week low: $1.51
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WHAT GOES UP must come down — or does it?
Shares of GoAmerica (GOAM) rocketed 361% this week, in what can only be described as an incredibly enthusiastic run-up to the release of the Hackensack, N.J., company's third-quarter results. And not even the ho-hum numbers that were finally unveiled late Thursday tempered enthusiasm for the stock of the tiny wireless-communications outfit. After stumbling briefly at Friday's open, GoAmerica's shares tacked on a gain of 27% to $11.78 by session's close on volume of 18.4 million — nine times the total public float, and 53 times its average daily volume.
"It went from an average three-month volume of 198,000 shares to suddenly trading 18 million shares on mildly positive news," says Jay Lee, chief executive of Bellwetherreport.com, a Canadian-based online financial newsletter. "I would like to know where the sudden surge in demand came from." (Lee doesn't own shares of GoAmerica; Bellwetherreport.com doesn't do investment banking.)
So would we, considering the company spent most of the year trying to avoid delisting by Nasdaq. In May, GoAmerica executed a 1-for-10 reverse stock split and launched a $500,000 share buyback program to get into compliance with Nasdaq, which threatened to delist the shares in mid-June. Management appealed and by August received an exception to achieve a compliant bid price for no less than nine consecutive trading days. That didn't happen either. So on Oct. 1, GoAmerica did another reverse split, this time 1-for-8. It finally regained Nasdaq compliance on Oct. 21.
Now eight years old, GoAmerica's main product is WyndTell, a wireless-communication service that allows deaf people to communicate on mobile devices, such as Research in Motion's (RIMM) Blackberry. Most people in the deaf community communicate over landlines with the aid of a text teletypewriter, or TTY, which allows users to type messages in a real-time conversation. WyndTell offers the added benefit of allowing e-mailing from a TTY to a wireless device. GoAmerica provides related technology for Sprint's (FON) relay service for mobile devices. In mid-September, the company launched a new wireless relay product with Sprint and T-Mobile. It expects revenues from the new product to have a positive impact on fourth-quarter results.
"What it does is a very interesting idea," says Carl Zetie, an analyst at Forrester Research, a market research firm in Cambridge, Mass. "It's an underserved area. It's a compelling idea. People that are hard of hearing are a natural constituency for tech-based services on wireless devices. It's a natural extension to make this available for mobile hard-of-hearing users." (Zetie doesn't own shares of GoAmerica; Forrester Research doesn't do investment banking.)
As for the third quarter, GoAmerica posted a net loss of $1.2 million, or 61 cents a share, compared with a net loss of $1.0 million, or $1.48 a share, in the year-ago quarter. For the second quarter, it reported a net loss of $1.4 million, or 64 cents. Per-share results were adjusted to reflect the reverse stock splits. There are no Wall Street analysts covering the stock.
At first glance at the per-share figures, it appears as if GoAmerica improved its financial performance. But closer inspection of the financial tables in the earnings release shows otherwise. The 61-cent loss for the latest third quarter was based on two million shares outstanding, far more than the 678,883 shares outstanding a year earlier that yielded a loss of $1.48. If two million shares had been outstanding a year ago, 2003's third-quarter loss would've been just 49 cents.
Total revenue plunged 55% year-over-year, and 13% sequentially, to $1.4 million. The company blamed the sequential decrease partly on the declining use of its older services. It also said it was working to weed out subscribers who weren't paying their bills.
Joe Karp, GoAmerica's vice president of marketing, thinks this week's share rally was well deserved: "We felt that the stock was undervalued where it was. We have a strong balance sheet, and we will continue to have a strong balance sheet." GoAmerica has no long-term debt. As a result of a private placement of 105 million shares in March that raised $14.5 million, the company's cash balance stands at $8.1 million, up from $568,000 at the beginning of the year.
GoAmerica's largest institutional shareholders are Austin W. Marxe and David M. Greenhouse, who run a hedge fund that trades in a number of microcap stocks on the bulletin boards and pink sheets. Both were involved in the March private placement. They now hold a 14.7% stake in the company.
"These guys trade tiny-market-cap stocks in precarious financial positions," says Peter Cohan, president, Peter S. Cohan & Associates, a management-consulting and venture-capital firm in Marlborough, Mass. "If you look at their holdings, almost every one is that way."
Marxe declined comment for this story.
Quote:
"In the course of one week, the stock goes up more than 300%," says Cohan, the management consultant. "If you look at the financial profile of the company, I don't think the fundamentals improved 300% this week. There is a big gap in the performance of the stock and the performance of the fundamentals. If there was ever a great example of how a stock doesn't reflect the underlying business, this is it." (Peter Cohan doesn't own shares of GoAmerica; his firm doesn't have a business relationship with the company.)
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