Webdrone,
You've got it right. I also think that there are hotter small-cap companies (with little baggage and no earnings dissapointments...) out there right now. Even with the recent runup, I like VTSS, TXCC and LEVL.
About the train leaving the station.... I think Dan Spillane called this stock right about 2 years ago. (Dan also turned me onto VTSS...) I've, frankly, been dissapointed since it's initial run to 36. Pink helped cream this stock, and it was an eye opening event for me.
Now....since this stock has been deeply wounded, I don't suspect it will be a survivor as MRVC a year from now. If it's around 1 year from now as MRVC, it will still be in the low double digits. Believe me, if the technology is that good, this stock will be shopped.
However, to stay on their own, exciting technology isn't enough. You're starting to see the tip of the iceberg about lower hardware margins due to very extreme pricing drops to get and keep customers. You're seeing late technology deliverables. You're seeing higher costs for SG&A, with little management guidance on this (really got me mad about this...)
Frankly, I've lost confidence that they can be winners on their own.
Regards, |
