Kumir:
I respectfully disagree. VRTY slide has nothing to do with its actual performance at this point in time. Just look at the volumes -- they are the lowest they have been in the past year. (Avg. 163,000 vs. 61,500 current).
The main reason for that are mutual funds. VRTY, or any other small cap company's stock will not move higher because you or I will purchase 500 or 1000 shares -- that's peanuts. At this market, "Blue Chips" are getting all attention, becuase of the increadible flud of money into the mutual funds. These "large caps" have overvalued P/E ratios, however, due to the power of money flows they "artificially" getting bigger, driving the stock to new highs.
I predict that in the very near future there will be a major correction, and then you will see money going to small caps. Verity will be one of the beneficiaries.
Several Financial Brokerage Houses have set a target price of $18.00/share by the end of the fiscal year (May, 97). Hang on, you must take a bit longer view.
This company produced 17 announcements in the past 60 days -- all positive and will drive revenues. As long as management can stay focused on expenses, they will be profitable for the next 1 to 2 years. The stock's current level is a bargain for a long term investor.
Respectfully,
Jack Shoykhet |
