Redhead, I am going to wait a little and see where this thing settles. There is sure a lot of fear showing in the stock. However, the short position is quite small, so no help should be expected from there. It is possible that we may see a "capitulation dive close to the delisting, and then it might be a candidate for a bounce closer to its "real" book value (about $1/share). I ma not too concerned about the losses they expect, but not knowing how aggressive management is, I have no way to estimate what additional service business they expect to get. It seems that the service business is a small part of their total business, so the loss of $700,000 in revenues (and maybe $1,000,000 on an annualized basis) should not have hit this stock so hard, if it was not manipulated to that meteoric rise few weeks back.
Zeev |
