Gator,
The message you get from YHOO is really a cut and paste of JBOH's 10-Q/A SEC file (Jan. 22, 1999). But He/She only copy the bad part. I think market is already discounted that. That's why JBOH price is so low compare with others, such as SCH, EGRP, SIEB, and so on. The risk is certainly there. They said in the same 10-Q/A file they have a sound finance and cash position of 9+ million. Is that enough for them to settle any claim against them? I don't know. I would not put too much money into JBOH (I mean not more than 5% ). A correction on JBOH suggested by that YHOO message is very possible tommorrow. So if you do want buy, you certainly can hope for a better price. Based on the business they have, I estimate they have an earning power of .50 or more per year. If we use SCH's PE 70, than JBOH worth $35. If we assign a PE 30, than JBOH worth $15. In such a business environment, I expct them to make even more. But if SEC ban them to do security business all togather, then all bets are off. JBOH goes to zero overnight. I don't see that happen, though. Financial problems are really related to stock price. The higher stock go, the smaller the problems. The smaller problems will send stock even higher, which will turn problems even smaller. Finally, problem will disappear all togather. That's my theory. No prove, though.
BL |
