Hi Jane,
I agree with your posts 100%. The fuss re payment to IBD is really "much ado about nothing".
Remember: It was IBD which was attracted initially to the sector,the technology and DGIV. It was IBD which placed the first call to the company, expressing their desire to feature DGIV in next week article(s).Now, even if DGIV had to pay for the article (printing, expenses, etc.) what should they have done? Say NO, we don't want the extra, national exposure? Do you think Intel, Microsoft, Cisco or any other company would have said NO to IBD's attention?
What we need to focus on are:
1)There is a reason why IBD was attracted to DGIV in the first place-the hot sector, the technology, contracts, fundamentals, etc..It is the same reason which will drive this stock price up ULTIMATELY!
2)There are THOUSANDS of penny stocks/micro/small/mid/large cap stocks who would have LOVED to receive the attention from IBD and DGIV was THE CHOSEN ONE! Given IBD reputation, if IBD were NOT interested in your company, they would never write about you even if you PAY them!
3)I would assume that most of the companies featured by IBD previously received a short term boost to the stock price (and they would also pay IBD for the expenses,costs,etc);hence, why should DGIV be any different in term of a short term rise in its share price? Long term, of course, it will be its underlying fundamentals that will determine its fate.
4)My understanding of the IBD situation is that DGIV will be mentioned 3 times next week. Think of the exposure that would bring to the company!
5)A large percentage of the available float has changed hands at the higher prices recently, thus giving the stock price a much stronger base. With the IBD article(s) and pending news subsequently, a rise in price is definitely probable!
6) There is a reason why a stock is a penny stock or a microcap stock:A relative uncertainty about its future! if investors were SURE about its future, the stock would have a MUCH higher price. To invest in this kind of company means taking a certain level of chance (there is no free lunch). Having said that, how many OTC/BB stocks (out of the thousands) have been considered by IBD to be exciting enough to warrant an article?
The points listed above are the reasons why one should own this stock, in my opinion. |
