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Jim: As you know, I have followed this company for some time, at least a year. I have even bought at what I thought was a reasonable point, and saw the stock continue its downward path. Been there, done that. I got out right away. This company, like many others, has an attractive product. It could go markedly higher. And, if it does, it is likely to do so rapidly. It will, perhaps, be hard to get in at a favorable price. But who knows? Fundamentals ultimately prevail. The company's promotion appears to be limited. I don't know if their airlines magazine publication is sufficient to drive the company. No other advertising is apparent. The older product, typically inoperative, and with no instructions to fathom the obscure symbols on the device, continues to languish in the stores. The company exists within a limited time frame, less than one year, perhaps 6 months or so. They, of course, might seek further financing, but also with further share dilution. Fixed costs, as we have discussed, are high; income limited. Something besides the attractiveness of the product has to happen to be reflected in demand for the shares, and consequent price appreciation. This may be the most critical period for any start-up company. I have no reason to doubt that some parties have an interest in seeing the price move downwards. However, I suspect they also make a fundamental appraisal of a company before taking the short side. And price action over a prolonged period is hardly assuring. So, if it is in the cards for this company to do well, it will do so. But, no doubt, in its own good time. Steve |
