Roger, here's a good short, CUST. This is a company, formerly know as Amtech (AMTC), which has changed business models twice. They sold their old line of business, consisting of electronic access control and electronic toll and traffic management products, for $80M, planning to make and market custom music CD's over the Internet. Failing to get licenses, they then switched to developing a transaction payment system for music downloading among other e-commerce initiatives.
Their product is shrouded in secrecy. They have no revenues or contracts. They will be up against the likes of Liquid Audio and the entire music industry which is developing their own standard. Sure, a director bought a large number of shares and the CEO of this company developed software for Blockbuster, but it's hard to believe they can pull a market leading product together in just a few months. There are 11 million shares in the float, only 15 employees. The stock has run from 3 1/2 to 60, sporting a market cap of $900M. Only one analyst is following it. His old price target was 17, but he has suspended his new target until he hears from management in June regarding progress on the new product.
What do you think? |
