<<I love it when guys like phbolton and Don Kelly...ridicule the performance of a stock that has increased by 162% over ten months, based solely on its movement the last 30 days. Attention deficit disorder, I guess.>>
It was not my intention to ridicule anything. To the contrary, I congratulate anyone who has made a profit on SEEC. Since I've shorted it twice in the past week and covered the same day, that includes me, too. I hope you've made money as well.
As you astutely pointed out, the stock may go up from here or it may go down. I'm betting it will tank for the following reasons:
1. It has already started tanking. That's why, in my previous post, I pointed out the closing prices for the past thirty days.
1. Seec is a tiny little company trying to cash in on the Y2K mania. It is a story stock with no fundamentals, and no realistic business plan that I can determine from any of their filings. The company's miniscule 2.5 million in sales per quarter cannot justify a 100+ million market cap. It's not so hard to double revenues if you start with 0.
2. Recent Insider Sales:
152.175.36.230
3. Dilution, Dilution, Dilution:
biz.yahoo.com
3. Increasing Short Interest:
10/97 85,010 ÿ
09/97 60,922 ÿ
08/97 63,801 ÿ
07/97 62,911 ÿ
06/97 24,620 ÿ
05/97 9,973 ÿ
04/97 3,567 ÿ
03/97 0 ÿ
4. In general, Y2K stocks are overhyped and most of the costs for fixing the problem will be spent in-house or on new systems. Even if companies will spend a lot of money on outside vendors, show me why they will spend money with THIS company.
5. I could keep going, but my attention is wandering again.... |
