Gary,
I analyzed the financials of this company and I agree that it is not looking bright. So let us try to device a strategy for shorting
this.
It appears that:
-the series A folks can convert any time now that they have registered with s3-A, also the news of this offering really had to be dug out and seems to have been cleverly hidden and mixed with another news (no separate release for this private placement)
-the dilution keeps increasing
-book value of 85c
-no significant instituitional support (4 inst holding about 1%)
-no significant sales to speak of
-technically chart is consolidating about 15 and there has been nothing to push it up or down.
-the push down can come from arbs shorting it (BTW, interetsing clause for the seris A buyers from S3/A that they can short only as many shares they will convert and not more, I guess they will take it).
-the last private placement in Sept of 5M was fullly converted by the time the new one was offered, and it seems it was done rather quickly looking at the chart; the stock dropped about 3$ during the process.
-any idea about insider holding?
-short interest in December only 85K (probably was not marginable?)
also that keeps one away from mob psych problems
-don't want to go into technical details, I think multithreaded arch will be the trend of the future, but people are going to need cheap microprocessors that implement MTA and not $5M machines with MTA
-any idea on when the next Q report comes in? they are expected to post 38c loss, so unless the surprise is on the upside, there is no reason for a price bounce, do you know reasons for an upside surprise?
-IMO, the stock is shortable at this point.
Will appreciate your comments, are you already short?, the YHOO thread seems a little hostile ;-) |
