Barb,
His financial data was incorrect. Hind sight is 20/20. The report did not mention IQX-200, NetArm or Gigamux. What it did mention was that the aquired companies would leverage key technologies to bring new products to market. This has happened.
My reading of the 10Q's back then told me that there was going to be a certain amount of share dilution. I didn't think then that David had accurately accounted for that, not that I'm an accounting expert but it was apparent to me that the aquisition activity would bring about more shares. The new reporting rules have laid it all out on the table now and we have 21 million shares. This number could increase going forward, but not by millions, maybe a few hundred thousand here and there as needed.
I believe the dilution of shares would have been absorbed by the market to a much greater extent without the negative press. Not to use that as an excuse for everything that ails FIBR, but that is an important factor in where FIBR's stock price stands today. There are far too many examples of stocks with potential revenue valued much higher than FIBR. I have been waiting for substantiation of the negative news, but none has come. I have found several sources of reports on the "mob on wallstreet" in letters from Congressman, Rangel of New york to be exact. This has turned out to be a non issue, or at least my search has thus far failed to reveal any large scale influence of the mob in the stock market and no mention at all of FIBR. There have also been no third party confirmations of any bribery, or wrong doings that were alledged in the Barron's piece. I'm not a blind long, I have sought out further information and watched like a hawk for it, and am ready to be convinced what they said was true by another similar opinion, or some hard proof, but alas nothing but one magazine, one author all alone.
FIBR is still a small speculative company working to carve out a niche. Risks of larger competitors a changing technical landscape certainly exist, with other risks as well. This is certainly no slam dunk.
I don't make price predictions or "trade" stocks. But I have a good feel for FIBR, if you remember I sold prior to earnings until the dilution issue was clear. It is clear now and I'm satisfied and not scared off by 21 mil, my nigtmare scenario was much higher. I have a significant position once again. If I were one to make predicitions I would predict that news is emminent, yes we hear this a lot but not from me, and that there are a substantial amount of sideline players who will buy upon it's release. My trade, if I were a trader, buy now sell at 8 on a news spike. If I were you or CC I would short at 8 on the same news spike. I believe your short at 5 is a crowded party. Thats why I like it as an entry for a long position.
Good luck,
Scott
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