Believe me when I say that in all probability (I don't like absolutes), this stock will be up dramatically next April from its current prices. I have been following this stock for over 3 years now and as a result I am very knowledgable about the company and its stock price/history. Traditionally, October/November is when the stock hits its low for the year. This has to do with the fact that the business was very seasonal (since it was based solely in Florida) and summer revenues were almost non-existant. As a gauge, I bought last October at $.85 and November '94 at $.41. In '95 the stock tripled in value from when I bought it in '94 and this year, it went up 7-fold since I bought in '95, before it slipped back to current levels.
There really is no logical reason for the sell-off. HEARx has had some bad luck, that's all (the stock, not the company). In July, Dr. Paul Brown was featured on CNBC's Squawk Box. The price should have shot up, but it only went up marginally because the rest of the market started going into a correction. HEARx was not impervious to the correction either, and so the stock dropped sharply along with the rest of the market (twice, in fact). Then about a month and a half ago, some foreign investors who don't know squat about the company, were able to sell their stock for the first time. They decided to cash in the majority of their holdings and thus the stock took another big hit. Since then, the stock has steadily, though not spectacularly, declined really for no reason.
Knowing what I know, I consider this stock a screaming buy at current levels. I expect it to hit at least $4.00 (conservative) at some point early next year and $10.00 within the next 3-5 years. This would give you a nice return on your money. It can be bought as either a short-term or long-term investment.
-Gene |
