An assessment, for what it's worth...
Though I don't have any better idea than anyone else how high the stock can go short term once the Mits. deal becomes a reality, my guess is that yes, there will be a pop. Maybe a double or a triple if we're really lucky. Why not more? Because the company is strapped for cash in the short term, a situation which will not be immediately alleviated by the signing with Mits. And as things currently stand, I'd guess too that we may be facing more financings by the company before we start earning "real money", which means more dilution is probably in the cards. (Again, I know none of this for sure...just an "educated" guess given what I know)
All that said, and far more important (to me anyway) than any short-term pop, I think the signing with Mits. will be an important psychological turning point for the stock...and the beginning of a new phase in the company's life. We probably won't get to $10 for quite a while...there's still LOTS to do to become a profitable company...but I think with Mits. on our side, we'll have significantly higher credibility -- a higher profile too within our industry -- allowing us to move more quickly toward actually making money from our technologies.
I guess what I'm saying is that I think this long downtrend we've been in will reverse once we're signed...and that over the longer term (3-5 years and beyond), I expect to see SGII well beyond $10/share. All of this COULD be accelerated if OCET proves to be a commercially viable technology...
My strategy, strange as it may sound, is to buy some shares here and to "average up" as the stock begins to rise, using a technical chart of the stock's history (see Yahoo) to help determine future buy points. I'd rather leave some cash off the table for now and increase buying as the company becomes more solid.
There's plenty of reason for cautious optimism, including some recent buying by insiders (which personally I'd like to see much more of). But don't "bet the farm" on this stock. At least not yet. It is still a speculative situation... |
