Reason- you are right about DGIV, GLCP should react similarly if
management handles the PR properly. The key is to first announce the FCC approval and mention in that release that it paves the way for completion of deals in the hundreds of millions. The stock will fly from there.
But it is crucial to continuously update everyone by issuing substantive releases concerning the closing of each deal. This will prevent the stock from declining after it runs up.
Look at two examples:
DGIV- at .25 announces a stock repurchase plan, the stock price flies, DGIV then on a regular basis issues real, substantive press releases discussing actual contracts and actual revenue producing deals, instead of declining as most pennies do after a massive run up, DGIV has continued its climb. It has proven it is a real company with really good prospects and not just a bunch of hype created by daytraders, market makers and management.
BAAT- I also own this stock and I believe it will do very well long term , but they are a prime example of how to screw the investor. at around .06 their CEO began telling everyone of their remarkable technology that could drastically improve gas milage in cars with very little expense to the manufacturer.
They released an announcement concerning a foreign car company wanting to use their technology and the stock soared, also rumors of one of the big three being interested in buying the company or licensing the technology were rampant. BAAT's price ran from .06 to $3.25 in a few days. It has since dropped to around .70, which is still pretty good if you only paid .06, but it sucks if you paid $3.
BAAT's problem was that they never followed up on their announcements with anything other than fluff. Ford is apparently interested in BAAT's technology and is running independant tests on a Ford using BAAt's technology to see if they can verify it really works.
Unfortunately, this will probably take several months. BAAT has yet to announce any real revenue earning deals, but keeps making announcements that are meaningless to investors, thus many have bailed out and the stock price has suffered. I believe the company and the stock price will do very well over the long term, but I can see the disappointment others feel.
BAAT is an R & D company transitioning into a manufacturer and licensor of technology, unfortunately, they weren't quite ready to make the transition, investors got in too soon on hype and were dissappointed.
GLCP- is a real company with real products and real deals. They have been through the R & D stage over the past two years perfecting and debugging their product in pilot programs, now that they have the right formula, they are seeking FCC approval and can commence with full system build outs for the utilities they have done the pilot programs with and can sign contracts with other companies who can see the successful results of the pilot programs for themselves.
GLCP is ready to make the transition, BAAT was not. GLCP now needs to make sure that their PR is timely and substantive and all will be well both short and long term.
Everyone must make their own decision, but I plan on selling about 50% of my holdings at around $3 and holding on to the rest for the long term. I feel this one could be a terrific long term holding.
RCJIII |
