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the story here is quite simple I think. this company hasn't been making any money (any profit) because all revenues have been plowed back into expansion.....a classic growth stock. this is precisely what we as shareholders want management to do. the company reported 11.6 million in revenue, not bad for a young company. all of it went into expansion.
so how do we make money?? profitability. mr. brown has indicated expansion will stop for now. so what does that mean?? instead of the company revenue going towards opening more facilties, it goes toward the bottom line....profit!! so this stock will appreciate because it will begin to have lower net losses (as we have already begun to see), then begin to show profits, growing quarter after quarter. with all the big contracts ear has signed with hmo's, this company is in a great position right now. so hang on, all the ground work has been laid. the stock price will grow with the earnings increases.
also, it will probably become a good takeover candidate, something that would mean a qiuck profit for us, but probably a bad long term move, because the potential here is for steady long long long term growth.
keep the faith everybody...... |
