Mr. Ruckle,
I believe part of the problem is the lack of understanding by many of the technology of this industry. (I understand the big picture, but I will be damned if I understand the details... not a techie...)
A concern that I have had for a long time has been the fact that the valuation of this stock is in Canadian $.
The CAN$ has been under pressure for some time now, and although a reversal in that trend seemed possible, it is beginning to weaken, which obviously affects whatever profit potential one may expect in a medium term investment in ICS.V
The merging with Annasoft, seems to be step in the right direction, and if possible a listing in an American exchange (such as the NASDAQ, out of the OTC), as a subsidiary of the Vancouver company, with operations in the US, may in fact shield the stock of any possible currency gyrations.
After all, for the foreseeable future (in my opinion), the US markets may outperform foreign markets. Of course that may change if interest rates/other economic factors change.
I understand that ICS does have an office in Kirkland, WA, (a logical move if you are going to do business with MSFT, their neighbor in Redmond I do not know how the merger will affect such plans. (Annasoft in San Diego ?).
As I understand it Annasoft has been a distributor of software, which is a marketing company (please correct me if I am wrong).
Intrinsyc is strictly a software tools engineering co. so to me this is a merger made in heaven, market seemed to agree, now it seems to be taking profits...a retreacement ? Possible. Since from the low of $1.05 (CAN$) to the high of $3.38 (on a closing basis), a 50% retracement of the gain, would give us a possible retracement to $2.20 or so, (CAN$).
At this point I believe the market will be expecting reports of sales to validate current and future (possibly higher) valuations.
I understand that a number of announcements will be forthcoming, particularly I will be looking for an announcement of revenues which if positive, will consolidate and further the advance, a slow advance but solid may turn out to be a better one than an explosive one, that results in profit taking that can exaggerate the down moves...
The above, only my opinion, which could be wrong.
Z.
Z. |
