If the price drops a few points, I'd likely get back in because CCSI certainly has shown resilience. But my concerns are twofold:
1. Back in December the price was a post-split equivalent of about 10. Nothing is really substantially different since then beyond a new auditor and the hiring of a PR firm. Moreover, holders of the stock generally felt then that the distribution deal was as around-the-corner as they believe it is today, five months later. So one can posit, anyway, that nothing of real substance has occurred to account for the stock-price increase. Of course, there has been an expansion of belief and hope, but they can be pretty vulnerable to reality.
2. I get the queasies about a distribution deal that's been in the works for so long. There's been the cliched talk about dotting i's and crossing t's, but the Constitutional Convention in 1787 took less time, and that was a tad more complicated, I think. I'm inclined to believe that something's gone awry with a partnership distribution arrangement that's taking so long. And what I fear is that Chromatics is not able to cut the kind of favorable deal they hoped to get, even if they're making different arrangements with several parties.
Of course, I don't have inside info. (nor does anyone, I believe) and could be dead wrong (as many would fervently declare), but, to me, the situation looks dicier as time slides by while CCSI continues to eat up capital. |
