Joe,
Today's action doesn't surprise me. IMO This is the "show me" quarter. Today's announcement doesn't really show me anything. It didn't impress the street, that's a fact (8 3/16 right now). It reminded me of the announcement a few months back when ALTS secured the international sales force alliance. Sure, that was big news then, but that was then and this is now :). The way I read today, it basically says DG is allowed to sell 6500 seats. Sure, it says they expect to sell 25K seats over the next several years, but it doesn't say the seats are sold, or that EB is released.
I don't believe this stock will move without the *real* hard fact contracts, for example, look at how the SA pipeline project moved the stock, etc. In retrospect, today's announcement may blend perfectly with (hopefully) a near term announcement of EB WITH contracts. This stock has already bounced based on "alliance" and "potential". Everyone who has the stock has already elevated it to these levels on the expectation of EB. The only way it will elevate further is by "showing me the money", ie, contracts. I believe that will occur soon or I would have sold mine at 9 1/2 a few weeks back, or today at 8 3/4.
Would anyone like to share their feelings on how they believe this quarter is panning out? The last thing we need now is to retrace down based on a missed quarter. BTW, everyone, if you see a press release related to EB without EB contracts like today, expect this stock to go down like today.
The street wants contracts. ALTS, show me the contracts.
- Steve |
