To: TraderGreg who wrote (3274 ) 12/11/1997 1:30:00 AM From: TraderGreg Read Replies (1) | Respond to of 11708
I was looking at the tape and the charts to try and guess where we're going from here. Here's a recap of my observatiions culled from the gut, the head, and other posts: The stock price has steadily fallen through a mix of MM shorting, panic, and frustration. It has been painful to watch, but it has not been done on large volume, which is encouraging. This is not unique to the BB sector. Many of you are familiar with EUTO and SETO. IMHO, these two companies are nothing alike. EUTO has some humongous number of shares, doesn't report, I have no clue what their financials are, 50MM shares have somehow gotten lost,etc. SETO had but 10MM shares, reports to Sir Edgar, has earned 200K in the last FY, and for another 10MM shares has recently acquired a very profitable company earning nearly $2 MM per year(est). But what these two do have in common is that both had/have been severely shorted, with their stock price shattered. EUTO has a dilution issue, so shorting it was not a surprise. But what about SETO. I want you to think about the chutzpah, gall, nerve, whatever it must take to short a stock with EPS of $.02 all the way down to SEVEN CENTS!! (Of course, after their recent acquisition, the stock took off. But you know the shorters will be back) What's my point? Let's get over ourselves. If a stock with earnings and a P/E under 5 can be shorted so severely, then so will CSMA, especially while it's emerging into the growth arena. Just be prepared for it and every time they bring it down, look for the buy opportunity, not the market order to sell. Then hold em and hold em and hold em. The fundamentals of Coconino are still there. They are working on getting a retail market maker that will be pro-CSMA(one of the things that SETO didn't have). With time, the results will come. We took it fast, now we're taking it slow, but that's where we want to go, way down to Coconino. Fasten your seat belts. TG