JDN, at this juncture, it is clear to those who have done their DD that TPRO has a solid story and the steps they are taking are very postive. TPRO already has taken a significant run-up to now the 6 1/2 area from where it was trading this past June. If I was looking solely at the charts and some TA, I might conclude that in the absense of earnings, this stock is at its top. Any investment in TPRO I make would be considered then high risk and speculative.
It would be hard for me, if I was a broker, to recommend this security to my constituents. If the stock were to tank, my clients could take me to arbitration and win for my poor recommendation and possible misrepresentation. However, if in the near future, a solid earnings report that includes Y2K revenues were to be published the broker would feel more comfortabe recommending this security.
The information gathered so far allows us to surmise that 2nd Quarter earnings will include a significant Y2K component. This was discussed during the CC. In addition, we have been told about a 6 Million dollar order on their base business. I recall that $1.5 Million in Y2K tools have been already sold as of the CC and we expect them to close another $2 Million by the end of the quarter. In addition, two Y2K contracts will be concluded by Dec 31, 1997 allowing that revenue to be reflected on the 2nd Quarter report.
That said, we can now conclude that we can still consider ourselves early investors in this companies pending success story. When the rest of the community gets the earnings they are waiting for, many others will be chasing this stock, while we continue accumulating on our growing margin power. The herd will flock to the grove, after we have already picked the first fruits. This is a time for confidence in all the good hard work that has been put in. |
