I hate to say this, but you are simply misinformed (with regards to the lost contracts statement). Unless you can offer proof to the contrary, I assume you are referring to an article in Barrons which reported that HEARx had lost the Humana contract to a rival, or something to that effect. This caused the stock to slide at the time, even though Dr. Paul Brown came out and challenged Barrons' integrity for not doing more research. Apparantly, their SOLE source was a disgruntled ex-employee who took the one contract he was responsible for putting together (namely, the Humana contract) with him to a rival company. This, however, was not the ENTIRE Humana contract, as stated in Barrons. Instead, it was simply a regional contract, which had minimal effect on HEARx's earnings.
In regards to your opening statement, I agree. You want to be sure that the stock has finished falling before jumping in (especially a stock with negative earnings). I personally feel that the stock has nice support at $2/share. Today, with an announcement, the stock is up 3/16 to 2 3/16. I don't know if this is the start of an upswing, but I'm more comfortable thinking that $2 has alot of support now.
The large number of shares outstanding does concern me, but I don't think that will prevent the stock from being significantly higher by April (it's always had alot of outstanding shares).
Thanks for the input, and let's keep the posts coming (both positive and negative)!
-Gene |
