Theories...
I agree, JSI. I have been listening to all the thoughts about why TAVA didn't rocket on the great earnings news. I don't buy any one of them. The short interest is too low to make this a compelling theory. Besides, shorts cannot overcome the onslaught of thousands of buyers eager to get into a stock. If it turns out to be true that shorts can "have their way" with this stock, then it is a reflection of the lack of interest of buyers, it is not proof of the power of the shorts.
This idea that bad PR is the cause of TAVAs demise has grown long in the tooth on this board. It is ridiculous. If MSFT didn't issue a single press release (outside of earnings announcemnets), do you think the stock would ahve stayed stuck? The "bad PR theory" is just magical thinking.
I also do not buy the "big float" argument either. Yes, the number of shares is greater than it should be. But its not the numbers, it is the market cap that is critical. If it were just the number of shares, then one would have to argue that TAVA is overpriced at $1 cause "there are too many shares!" Clearly, this is not logical. As it stands now, TAVA's market cap is 150 million. With revenues of 30 million in last quarter, that gives a run rate of $120 million, so TAVA goes for 1.25 sales assumming no growth . That is assinine. To me, TAVA has never been a better bargain. This is too funny: I made big money on TAVA buying the frothy anticipation, I have now lost money on paper buying a factual growth story, LOL.
The best I can offer by way of explanation is that the balance sheet still looks hinky. Its not a powerful explanation, but I think it is one contributing factor. Look at the press release: Where is the previous balance sheet for comparison?? Why the huge current liabilities? Is this why TAVA can't get decent credit, and has to resort to warrants? Perhaps the perception is that TAVA is hiding something about its financial weakness.
Other contributing factors may be the small contributions from licensing and joint projects. The TAVA/Beck alliance is producing chump change.
Having said that, I doubt that financial strength (or lack therof) is a good single explanation for TAVAs stock price troubles. I am just mystified that a company with exploding gross margins, strong sequential growth, and a growing international presence cannot get its stock back into double figures. I'll listen to reasonable discussions of this, but I've had enough of the "bad PR" bullshit.
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