[QDEK]
QDEK's fundamentals at this time are fair in my assessment.
Pros are as follows: they have newer management (highly compensated), a plan of action to promote heavily, a good product line that is under used by the public (hence the marketing plan), sales that should turnaround soon (expected it already), and a bunch of cash to get them thru this tight spot.
Cons are: possible large dilution over the next year (especially if the price stays low), competition has more name recognition (Norton, Cybermedia, McAfee, etc...), sales are slow to materialize, my feeling that management hasn't had shareholder value as a major concern.
Summary: I am about even on this company but was expecting good things last fall. The recent frenzy was a knee jerk reaction, that has settled back in price. Many longer term shareholders have now been replaced by the next group "hoping" to make a killing (opinion only!). First quarter earnings report will show a loss (which should have been the turning point quarter which will now be delayed a quarter or two).
Where I currently stand: I anticipate getting back in under two scenarios: 1) the price is right ($1.50 - $2.00) or 2) when earnings become a reality. When earnings start to show we may see continued support of a steadily increasing share price. I had hoped for a $5-6 price by year end but with the poor first quarter, I am now not so sure. ;>) |
