It is possible that short term traders were expecting more news to come from the shareholders meeting, and are disappointed that they didn't hear anything spectacular. If it was buy the rumor, sell the news, then there is going to be more volatility than most people can handle and wide swings until it is cleaned up.
The company is now showing their forecast for sales to be approximately $105,000,000 over the next 5 years with profits in the neighborhood of $26,000,000. This is on their robust hydrogen sensor sales alone. dch-technology.com
What has not yet been factored in to the price at this point is the fact that this forecast does not include sales from their Universal Gas Detector, the Fiber Optic Sensor, or the Fuel Cells.
The sellers may just as easily be influenced by the small 1998 sales and the $4,000,000 loss. That is what makes markets folks.
The market will adjust the price when all of these other unknowns become known. Until then it is in the hands of the traders, and the longer term investors get a little unappreciated indigestion, as those with the shorter term mentality clean up. |
