I expected to be flamed as is typical on this board when someone says anything negative about this stock. This is an extremely speculative buy, no matter how you slice it. Putting all your eggs in one basket (as some on this board are doing) is very stupid.
The stock may have gained 600% in 6 months, however I would be willing to bet that the majority of the people got in at the 5-7 level, so at best they have a 20% gain. Hyped stocks generally do rise very quickly at first and then they start attracting speculators who, often, are late to the game. I did not question revenue, but CASH FLOW, there is a difference. (i.e., being able to pay your bills and/or fund expansion based on your receivables and revenue). The fact that they need a PP indicates that cash flow, at this point, is not strong enough to meet their expansion plans.
If the PP were so Private, then they should not have made any mention of it to anyone, especially someone who just calls the company or has close contacts with the company. It should have been announced as a single press release so all have access to the info at the same time.
This company still has not proven itself. The rise in the stock means absolutely nothing without substantiation. Positive earnings and the signing of new contracts will be the key signs, in my eyes, that this company is for real.
I am a shareholder of this company, but I have devoted no more than 15% of my portfolio to it. If it goes up great, I've made a nice profit, if it goes down then I lose only 15% of my portfolio, no big deal and easy to recover from. Trying to get rich off one stock is a sucker's game and if people keep playing that game, sooner or later they will lose. |
