To all: just a few thoughts on today's activity.
1. When Rico posted the first tally about 10:15 am, the ratio of sells:buys was at 3:1. At the closing bell, the sells:buys ratio went up to 1.5:1. That would seem to me that investors out there thought that at 3.5/sh, this stock is a good buy. So why would you sell now? Furthermore, from reading the thread, looks like at least 2 professional money people were buying/trying to buy at that level.
2. Whatever the reasons for the drop in price this last week, let's take a look at whether anything about the company's fundamentals has change over this last week - None that forebode anything to the negative. In fact, we had press releases on the funding from one of the German states and the signing of a subsidiary of the number 2 Swiss bank as an advisor to the company. Would these entities sign up with a company that didn't provide them with a good business plan and verifiable numbers? What do you think?
3. Can the company be trusted to carry out what they said they are going to do? The best way to judge that would be to do it based on their prior record. From where I am sitting, Jimmy Chin has delivered everything he had said that he was going to. April was a huge month as he said it would be. What about the Form 10? Have they delivered that yet? Not yet, according to the company's newsletter, and they have attributed it to the fact their SEC lawyers wanted to include Q2's numbers. A lot of people were disappointed with that and it does look like the company may have been wrong with their timing and they have apologized for it.So from now until when the form 10 is public, it will remain a period of uncertainty for many investors. This is when we are most vulnerable to detractors. And that is part of the reason the stock price is so cheap at this point. When the form 10 is made public and everything turns out to be kosher, the stock price by then will be much much higher. If investors are uneasy at this point about the company because the numbers are not available publicly, you should wait til when it is. You will then buy at a higher price, with a lower downside risk but with a lower upside potential to go with it. You have to make the judgment call. I based my decision to continue holding long in this company on the prior track record of the management. Based on that, it is my belief that Jimmy Chin will deliver on his intention for digitcom to be a fully-reporting company.
4. Needless to say, it is important to Jimmy Chin and DGIV's investors that the share price stay up and continue to move upwards. Again based on the prior record of the management, they have taken various steps to address that issue in the past. Would they do so again at this juncture? What would you do if you were Jimmy Chin and you know that your investors are taking a hit? I would venture a guess but that would just be my guess. You have to make your own predictions as best as you can based on what you have seen. Afterall, this is what investing is all about: a prediction of a stock price at some future date based what you think will happen to the company, the industry, the general market condition and your comfort level.
Good luck to all!
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