>> Take a look at the chart. <<
Now you see, that's the problem with some of you. Charts never make a company worth one penny less than they're worth. Charts can't see around corners and into the future. Charts indicate what nervous stockholders and shorts have done in the past.
Have you ever heard the little disclaimer "past results may not be indicative of future ..." (or however that goes).
I know I'm taking a risk. I've said it many times. I believe Par and Renn and Xin and others are taking risks, too. Just like early oil explorers (you know, like Exxon, Texaco, Gulf, Chevron) or biotech/pharmaceuticals (like Amgen, Merck) there's always a chance things won't work out. Demand may not be there when you need it. You plan to raise funds for operating by selling part interest in an up and coming part of your business, but stockholders get spooked by shorts (and maybe a bad decision to do a reverse split) and your stock price goes down. I hope the IPO still makes it.
But in spite of the barrage of posts by those who have interests contrary to my interests, I'm optimistic. I've shared the reasons for my optimism many times. If it was based on a chart I wouldn't still be buying on dips. Find out about the industry and the company's products:
Are their finances in acceptable shape?
Have they been mentioned as possible buy-out candidates by the highly respected Forester group?
Do large companies continue to do business with them a year after the Barrons assault?
What is the market potential for their new products?
Are they in a growing and exciting industry?
If there is a long acceptance cycle before candidates who are testing their products will award sales contracts, has the company been up front about this?
Are they able to obtain credit from reputable financial markets?
Is there a lot of interest in the industry for their new products?
If sales of old products have declined while waiting for new products to take up the slack, has the loss been gradual and within expected range?
Has the CEO bought stock in the company?
What's my tolerance for stomach churning swings?
If I'm accepting a risk, what is my potential reward?
If the reward is years down the road, what's the future value of today's investment? Would I do as well to put my money in a Mutual Fund?
Did Warren Buffet really start this way and hold through thick and thin?
Oh, yeah, and what's the chart look like - Not!. |
