The same analysts that recommend holding or selling Corel were issuing 'strong buys' when the stock was trading at all time highs.
The small investor is always at a disadvantage. The institutional clients always get advance notice to get in or out before we do. When they decide to get in, we are the sellers, and when they are leaving, we are the buyers. So they buy low and sell high, and the average small investor does the opposite.
The big volume in August is telling us somthing. They are buying in advance of news.
If I'm right about Q3, then the stock at current prices is a buy. If I'm wrong, then the stock price will probably stay where it is and we all decide to stay or move on.
Corel is a pretty safe bet IMO, downside is limited. Your invested money may be 'dead' at the moment, but the upside potential is there.
The safety is in the numbers. Look at the current ratio at 2.3 (a good safe number). The price to sales ratio (P/S) is very low. The cash position is improving quarter over quarter. Look for at least 30M cash position ending Q3 when earnings come out. The cash flow is very high.
So why are the analysts so bearish ?
Their reports are not their gut feelings. They can not afford to be wrong. Millions of dollars will be invested based on their advice. They must be conservative. They will lose their heads if they issue a bullish report and are wrong. They have no choice except to "wait and see". If they are wrong about Q3, they simply say "so was every other analyst". Then they all issue 'buys'. For now, they all sit on the sidelines. Volume of recent days is proof.
I on the other hand, can go by my gut feelings and express them here in this medium. Millions of dollars will not be invested by others based on what I think. In the end, I may make a few dollars for not listening to the analysts. I have before.
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