Congratulation to the "believers" (but don't let the IEI go to high), but that floorless is know declared toothless alright. I got a toe wetting position on the open, because I think that it is quite possible that after a run to just under $9 or so, the stock will come down with the rest of the market. If 7.375 holds, it looks as if an attempt to a new high within the next six weeks is possible.
So you do not think I have turned into a polyana, here are some other factors to consider. Lev must have persuaded CC that things are going to be fine, but on the other hand, the fact that the floorless issue was removed means that the date of 1/27 could not be met (and Lev must have persuaded CC that these are only temporary conditions), so expect some reactions to these event.
As I have said before, if the floorless is no longer an issue, there is no reason why one should no expect a "J" curve in results, if Lev can indeed deliver the batteries. Your estimates might, however, be a bar too tall to pass, and by not meeting them cause disappointment. It would be better if you looked at the market potential and assume a normal penetration rate to about 10% to 15% over the next three years. You could be disappointed to the positive side if VLNC beats such more conservative estimates.
Zeev |
