Huge volume increase today...
I wanted to chime in today about the MM's and recent trading activity. Compared to many small caps I've watched, I feel the MM's for NorAm have been pretty stable (not predictable...none of them are). Although many people here focus on the MM's, I think it's a total waste of time. Their pricing has been based more on inventory rather than buying demand lately. Over the last two weeks, we've seen a whole lot more buy orders than sells, yet the price has stayed down. However, with volume increasing recently, MM's run a little low on inventory, so the price creeps up. As we reach a new "level", we see some sells come in, which is typical because of all the traders out there.
In the end, I see the MM's acting in a normal fashion here, which I find some comfort in. The bottom line is that if volume stays up and there are a great majority of buy orders, the price will move up. The reason for buys orders must come from NorAm itself (the real bottom line in all of this).
I feel that once it becomes clear to the public that the VLT operation is beginning its revenue stream, a whole lot of bystanders will want to jump in "before they miss out". It will cause some volotility in the stock (maybe a little panic buying), but I don't care because I don't plan to sell a single share until sometime in 1999.
My advice is that if you want to buy this company after conducting your research, then place your orders at the ask now and enjoy the ride. These prices will look like "pennys" in the future. If Q1 '98 shows a .01 profit, this would justify a $4 price overnight. If NorAm acquires another company already operating at a profit, it could be even better, and so on. If you can wait to the end of Q2, then we should really begin to see support for a higher price. By July, we'll have VLT's, slots and bingo systems making us money. WOW!
Well I'm getting carried away. Had some fun last night working on the FAQ document. I'm always finding new things to add (changes won't appear until saturday).
dave |
