Hi David,
Thanks for your warning, I fully covered this morning, figured it already dropped 50% from the top of the spike, put it this way, it was a good learning experience for me. However, I followed your recommendation, I did look at the chart going back to around October 93, it started dropping from around $100 and occassionally it spiked up, everytime it spiked up, it is less than the previous tops. And according to the yahoo, for the 3 months ended 12/31/1998, revenues were 148,000; after tax earnings were -2,075,000, revenues has been dropping and after two more quarters they will use up all their cash. My reasoning is, from the limited research I have, if their technology is successful, why they did not get the licensing fee from those big oil companies pilot projects, a couple of million dollars to them is just like loose changes. And also the timing of PR, they took advantage of Clintons's "proposed" legislation, if they want to convince investors, they can convince them with increase revenues and positive earnings. Anyway, good luck to your trading.
Regards,
KC. |
