Just look at the recent volume, that has taken in the selling, which isnt just dissapointed investors, but there has also been a good deal of insider selling, which has all been taken in, judging by the failure of the stock to trade lower. Apparently, there has been a buyer for every share sold as indicated by the continued elevated price. This used to be the 52 week high!
With the sellers subsiding soon, perhaps by year end, and assuming the stock has remained relatively in this area, or higher, then I believe we can comfortably bet that a new floor has been established, from which to trade higher.
all this assumes also that sales continue to grow,
with those variables in place, I think the stock is worth $2.50 - $3.00 and will trade there in 2007 and then $3.50- $5.00 in the next 1-3 years, assuming they have their revenues rising and costs under control.
if we see all the above, then it wouldnt surprise me at all to see the company bought out at $5.00 per share or more.
I will consider that a great long term investment.
JMHO |
