Hey Rick,
I'm a realist...and in this current environment of cut-throat competition in networking, a $2 million revenue niche player realistically has little to no chance of gaining market share or increasing revenue against the likes of CSCO, ASND, BAY, LU, and even a MRVC!
So the question has to be, does FSCX have any product that exceeds the competitions' so that a customer would want to order their product separately from their end-to-end solution provider? That answer is a resounding NO! Do they have anything to offer a potential acquirer, maybe, but I am starting to doubt that as well!
All those "what if's" are wishful thinking! Even if FSCX could pay the judgment outright, they are STILL going to need a capital infusion within the next 6-12 months! The sales figures are DECREASING, not increasing as you would hope and there is zero profit to depend on! Any CEO willing to sell his company has plenty of reasons for his motivation...the question here should be WHY KG Data is selling in the first place? He probably couldn't find any other sucker willing to take it off his hands! The firm was losing $$ before, so you would have to discount his anticipated losses over the next year or two to determine his mindset and willingness to accept FSCX stock!
As for my motivation, I'm a finance guy, and the numbers coming out of FSCX spell trouble to me! I'm not a shorter, but I am willing to make short-term trades in companies that I see headed for trouble but are surrounded by enough ambiguity to allow wide trading ranges.
You've been hyping this stock with your so called informed sources as the price has steadily declined below $2. Your base of $6 1/8 was shattered so you have made the classic mistake of going defensive in your investment analysis. I know, I've made the same mistake in the past (MU & TMX)...don't fall in love with your stocks! Sometimes it is wiser to cut your losses and run like hell, and if I had an average cost over $2.5 and/or have an unusually large position because of averaging down, I would realize the loss NOW so that I could trade my way out of that hole over the next 9 months!
Unlike you, I wish you all the luck possible in your investment choices, but you should open your eyes ASAP because you might get stuck with some FSCX stock certs for wallpapper!!!
$weet Dream$
$tar |
