This company has been valued below $10 for a long time, and recently around $2. What is supposed to be making the difference is the internet side of the business - does someone have figures for that? So far, the stock has behaved as if life is just oozing out of it. I don't know how many shorts are left - it hasn't been shortable since it hit the top of 48 a few days ago. Obviously at some point we'll get a bounce, but if you really want to make money, why not wait until it crashes and buy then?
Incidentally, the big shorters have said they have already covered; Anthony@Pacific is out and has been recommending everyone to cover. don't count on them to prop up the price. Massive insider sales may still be working their way through the system; give the fever time to rage. I don't want to go long until this descent stops - today was still 16.56% down, one of the worst on the Naz. I'd be really surprised if it gaps up tomorrow; I think we'll see 12 before we see 20. Timing is going to be everything - we benefit from a crash if we can time it right.
Anyway, if you want to make an argument with earnings, please make it; I don't see it at 16. Don't count on internet retail as an "up sesame" - there's a big move from internuts into blue chips, with a few honorable exceptions such as Amzn. Whatever the future prospects, we'll get a bounce on SKYM, but I'm not convinced it'll keep its head in the clouds above 20 for long.
Kailash |
