According to my TA, which is in no means a signal to ANYONE with regard to what they should do, we should see price of around $4 on March 2. People criticized me when I predicted we'd see $3.50 in mid december and criticized me again when I prediced we'd see $5 today. Take it for what it's worth.....TA on a BB stock! I really see the NASDAQ listing as ironically putting DOWNWARD pressure short term on the stock due to it's valuation ratios. When I explained this earlier, people pointed to many examples of companies with a negative P/E ratios selling for much more than FTEL right now. These people misuderstood the ratios I was talking about. I'm fine with a high or even negative PE ratio as long as future growth can support it, in FTEL's case I have no problems with the negative earnings and I don't question FTEL's future growth potential! The ratios I AM concerned about are P/B and P/S. FTEL currently has a P/B of 99.99 (because my source only lists 4 decimal places!) A P/B of anything over 8 on Nasdaq is considered very pricy, I like to see this number under 3. The P/S ratio of FTEL is 27. A P/S of anything over 4 on Nasdaq is considered pricy, I like to see 1. Those of you who pointed to all the companies with high or negative P/E's please take a look at their P/B and P/S ratios, you will see they are trading very much within a narrow range with respect to these ratios, regardless of the industry. Rarely if ever will you see a P/B over 8 or a P/S over 4. Some industries have a high P/E, some have a low P/E, but they all share a similar valuation with respect to P/B and P/S. These are the real driving ratios when it comes to a nationally listed stock. Nasdaq, IMO, will not take kindly to FTEL stepping into the market with their current valuation and IMO the gradual decline we are seeing since the announcement is in an attempt to get FTEL fairly valued before a listing.
Sorry for such a long winded answer.
Dave |
