Hello Kathy and All: The conversation on this thread is indicative of the clash of two styles of investing: the momentum investor vs. the fundamental investor. The former is focusing on the market psychology while the latter is looking at the numbers. The former sounds like a cowboy, while the latter comes off as the school mistress.
No matter how you look at this company, it is incumbent that you look at the financials as Kathy has urged. The financials reveal the brains behind the company. If the financials are suspect, then no matter what kind of an investor you are, you should steer clear of it. If the financials are great, then your gut feeling is reinforced and your momentum ride will be sustained.
BTW, to say that it is normal for startup companies to have screwed up financials is absolutely wrong. It is not normal. Many start-up companies are held to a very rigorous reporting system by their venture capitalist partners. Sure, they may not be profitable, but they have their i's dotted and t's crossed. NHMCF's balance sheet is indicative of its management. Study it and draw your own conclusions.
I feel that the analysis offered by the Motley Fool Wizard should be heeded by all. If you are going to play, be ready to get out quickly because this stock can tumble hard.
I would say that the market is all-wise. Remember the positive earnings report.
What happened? Nothing. That really turned me off on this stock. The market is saying that it wants more performance, more postive earnings, more time. I would suggest that anyone who is planning to invest in this stock should wait for the next earnings report. If you have invested more than 10% of your investment assets in this stock today, sell down while you can. Protect yourself.
If you can afford to be blindly bullish, great. But if you can't, it will pay to be patient. If this company is real, there will be plenty of time to buy shares without having to invest in Zantac as well.
Good luck to all. Patience pays. |
