Wade, it looks to me that OCOM has developed some valuable technology. But the value of a small tech company is not in the technology, but in the heads of the folks who developed it. The people are the real asset. Based on rumors, it appears that OCOM did a layoff today. Anytime that you here "small tech company" and layoffs in the same sentence, head for the nearest exit! Although you try to lay off the "bad" folks, it is the "good" folks who have the most job options and will now be shopping.
If I, as CEO of another tech company, wanted to enter this business area, I would not try to acquire OCOM. I would just send a head hunter for their best people, much cheaper. Destroying staff morale (and believe me a layoff is not good for morale) is often the kiss of death for a small tech company.
I am short, a vulture who flew in at the close today to feed upon the carcass. Here is some advice for the longs based upon my experience in previous situations like this:
1. If it by chance starts up at the open, hold until it turns back down. Sometimes you get a "relief rally" if events not as bad as expected.
2. If it gaps down at open, hold until later in day. Often over reacts at open and will partially recover later in day.
3. If it opens flat or with a small downtrend, sell immediately.
Good luck to everyone, take a hot shower, drink some milk, and get a good nights sleep.
Roger |
