First things first. I am a broker with many clients in this stock at prices as low as $.35 and quantities as high as 30,000 shares. The $.35 and 30,000 shares are not the same client. I have been following this stock for 8 years.
Yes, it makes for a great trading stock. I've seen it go from way down to way up more times than I can remember. The last time it was $5 was in '92 I believe. So, we're about to break a 5 year old all time high. Technical analysis would say if it closes above $5, it goes higher.
I certainly would not classify the company as self hyping - just try to get anyone there to project some numbers for the future - it ain't gonna happen!
The problem in the past has been nothing more than a lack of positive earnings for more than one quarter in a row. Investors are waiting to see it happen. When news comes out, the price goes up. After a few days, the volume falls off and then the traders sell - dragging the price right back down. Happens every time. The company, until now, has never released any news, no matter how menial, to support the price rises. Thus the volatility.
Looks to me like the price and volume spike on Wednesday was more related to the Oracle rumor than to the press release. Yes, the release was positive, but it wasn't that good.
This company is at a stage where, with the acquisitions they've made, big things could start happening any day - literally. As a side note, I've been told to expect news within the month. S&P is looking for positive earnings for '97. If that is going to happen, everyone would agree, that some really big sales are going to have to be made, and right quick.
You can all believe in or doubt the company all you want, and you can trade in and out of the stock also, but for my part, at this point, I don't want to be completely out of the stock from here on. They've made acquisitions, done the transition, gotten a new CEO with excellent credentials (check him out) and are poised for great things.
Make your own call. |
