I hate to keep nagging you, old friend, but its the support level, not the resistance level.
And not to make too fine a point out of it - who the hell has departed? Far as I can tell, only Dreyfus and the margin sisters are gone.
And when did the Company reassure shareholders that everything was OK? I must have been out of town for that one. Newcom hasn't turned their back on us, they haven't even arrived at the party. I personally don't think the financing will be done for at least another week, possibly two. There is too much information not available on software control systems that the company has to dig up by hand.
"Stocks with a huge short position rarely come back and shine"? Ever hear of a short squeeze? The main reason the shorts are all over this stock is because word was all over the Street they were negotiating arb type financing with the likes of whores like Jessup and Lamont. No need to hurry and cover at this point. No volume buying, no financing as yet, still margin sister selling. I personally would prefer that the sellers NOT come back into the stock. They're the skittish ones who helped drive down the price in the first place.
Newcom didn't take advantage of anyone. Want someone to blame? Blame Steve Veen at Aura, the CFO for Newcom during the first few months of its infancy. He set up great controls at Aura. Trouble is, Aura has no income, no receivables, no inventory to track. Meanwhile, he let the cash cow of the whole shebang spill her milk into the ground. Even as recently as December,when Newcom was pulling down $30 million in revenues for the Q, Veen scarcely spent a day a week at the company. That is incompetence (not ignorance- after all, he implemented the necessary systems at Aura) of the highest order, and the company (and the shareholders) are now paying the price for his incompetence.
Now, Ed Stoltenberg has to build the whole controls infrastructure from scratch. Meanwhile, banks who want to set up credit lines for Newcom have to wait days and days to get information that should be available at the touch of a keyboard.
The investors haven't been kept in the dark. The CEO, Sultan Khan was kept in the dark by his so-called CFO, Steve "Newcom, that name rings a bell" Veen. With Ed Stoltenberg, and a strong investment banker like Furman navigating the ship, this Company will reach sales of half a billion in 3-5 years.
Investors won't come back? Hah! They'll be back at three times the current price. The rest of us never left! |
