Yosid,
Your statement in post #511, "...buying as much of this stock (LCAV) as you can get. If you believe in the industry, buying when the stock is out of favor can be profitable." can be true when fundamentals are good and when business conditions are expanding; but, there is some question as to the health of our economy and of business expansion at this time.
You are correct in observing that LCAV is out of favor, witness the current decline. The question is, how far down in price will the stock go, and how long before it will begin its growth phase? Fundamentals will answer the question of "how long", and technical analysis will give a close estimate of "how low in price".
As to the fundamentals, there has been a lot of passionate discussions on this thread and other bulletin boards regarding the use of the laser equipment, and whether or not LCA Vision is using the best of the available laser equipment and which is the most effective procedures. Also, which is the best way to position the company for long term expansion and profitability in the light of financial needs and stock market exposure.
I must say that I do not have answers to these questions, so I have to depend on the judgment of Dr. Joffee and his company to make the right decisions. And after all, isn't that why we invest in one company as opposed to another? We make a choice based on faith in the management to make the right choices. It is a gamble on our part as to whether our judgment in picking the right company was correct as confirmed by the increased value and price of the stock.
In summary, fundamental analysis is composed of many dynamic factors both internal to the company and external to the economy. These are complex issues with uncertain results, but they must be considered when buying or selling a stock. As of the present time there are too many unknowns to allow further purchases of LCAV.
My next post will cover my technical analysis of LCAV.
Harry
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