Brian, I think you are partially right about musicguy -- a bit of jealousy. However he is dead right about HEAL. Proceed with caution. Looking at their 12/98 balance sheet just doesn't give much confidence that they can continue as a going concern. (less cash than I have in my money market checking account, three times the inventory they have of ARs, and a current ratio of negative 3! A buy out to get the rights to the technology could happen, but not at the current trading price of the stock when compared to recent (Before Daniel) history. I know that if I was looking at buying them I would wait to see it settle back down.
I agree that their technology looks good, but empirical data growth rates, profit margins, cash flows, and financial position have to be taken into account. This is different than a start up. They are basically changing their whole business focus, but are saddled with financial problems from their past missteps. I'm not saying they can't get the job done, but it is a huge job.
I suggest if you have profits on this (at $2.5 at time of this writing... oops now 2 1/8), and don't have any special inside information, you are hanging on against rational thought (i.e. you're rolling the dice). So be careful, and grown up about your bet.
Lastly, if this blows up DON'T BLAME DANIEL!!! You have been warned.
If you can find the shares to borrow a short doesn't look like a bad way to go on this one for the next day or so. |
