IMHO:
I think what is happening with GNET right now is a speculative bubble that will end soon. Stock split hype, positive earnings, and the like. Internet stocks sold off very severely at the end of the day. I wouldn't be suprised to see more downward movement all around the board for the next couple of days. I suspect that GNET will trade lower before it trades higher in the near-term.
I was right on 4 cents and right on the negative earnings. As we all know, #25 is not bad, but I am not so sure it is worth more than 700 million. Needless to say, we will have an excellent chance to follow the growth on this company. They are building this business slowly, so unless they are bought-out really soon, there will be plently of entry points along the way. So don't feel like you missed out on this one if you are not holding GNET at the present time.
What I do like, is the way their income and balance sheet reads. For the first time, I could look at an internet company's balance sheet and visualize what was actually going on behind the scenes.
Next quarter, I want to see massive losses with new and exciting acquisitions and new products. GNET is going the right way, stockholders need to give them some time.
I would like to thank Steve Harmon for pointing this one out to me. Those of you out there that follow Steve, I think you'll agree that the fellow has a good eye and probably some big help behind the scenes
In the near term, provided GNET can set up a strong credit facility, GNET should buy everything in sight that might improve their internet offering using stock and cash. This of course will dillute shareholder equity and earnings but it will be for the best.
Good luck to everyone.
Chris
Did everyone see the internet sell-off at the end of the day. This is going to continue on into tomorrow folks. This stock will see 105 again. |
