Pirate-
I really can't address why the CA holders didn't (YET) complain about possible news leaks prior to release of news yesterday. As you so succintly mentioned in a recent post to me: "As history tells us, no two situations are exactly alike".
1.Did those holders call the spin doctors (IR) at CA and get outright lied to? Because EQNX sure as s%8#! lied to me!
2. CA at least had the class to announce before the market opened, so that big and small shareholders alike took the hit. You'll recall that EQNX asked for a halt for news at about 10:45, on a Monday, which to me stinks to high Heaven. As in, they kept the stock open long enough to let all their little playmates they talked to over the weekend get out before they announced. That's in addition to the clear leaks of the week before. Why else such bizarre timing?
3. The reason the stock is languishing far below a "fair" PE is maybe nobody believes them anymore. As soon as they screwed their shareholders, maybe they lost the right to trade at a market PE. You yourself said that you had misgivings about them longer term (doubts about their ability to play in the big leagues). There are a lot of new, clean stock stories out there waiting to be discovered every day. Why stay with a soiled one?It makes sense that until this mysterious new OEM is revealed as a bona fide CUSTOMER that some (me at least) will be just a bit skeptical.
4. As to new products, the guy I talked to in their finance dept. that week before was a lot less rosy about the potential of those products than Dambrackas was. "Oh yes, he did mention we'd be introducing new products at some point later this year didn't he?" "Well, of course we have no way of knowing yet whether they'll be as well received in the market as our [older line] has been... our [older line] was received really well... there's no telling whether the new line can live up to that success." Or words VERY close to that effect.
5. Once burned, twice learned. That is why the stock languishes. And as I said in a previous post, it won't be the first company to have a temporary quarterly glitch turn into a very long, frustrating ride.
6. The stock's volume and other technicals suck. It made an almost perfect 33% retracement from 7 1/2 to 10, and is now trading unenthusiastically back down. To retest the lows? Probably. To await the actual OEM news, and a sustained pickup in orders, and the actual rollout of new product? Very probably. To await Godot? Yes, that to. |
