I have been following and owning ZOMX for 1.5 years and I am really having a hard time doubling up at these prices..the flippin PE is 4! and its revenues are skyrocketing when CD and DVDs are just selling lock hotcakes..after all thats what people do to relax when times are tight..listen to music and watch movies....the damn stats are fantastic and the overhead and debt ratios are almost nil...am I missing something??
If misery loves company...this bone you are looking for is in ALL the company you have. I too have been tracking Z and "stand" with the longs, which has never been more difficult than right now. I certainly don't agree with many of the "bashers" on this board and I believe that much of this downside activity is simply a result of a management that either does not know how to (or chooses not to) deal with PR associated with "change in business activity". I choose to think that "this management's introverted views" regarding communications with "Wall Street" is the problem with this stock. Z management need only pick up the phone and open up a dialogue with the public, through brokers handling the stock. We are all big boys and girls and can handle the news...it's NOT knowing what is happening that's destroying the credibility of Z in the marketplace and of Z management.
I remain "long" and confident despite management's secrecy and am reminded of the phrase "forgive them Father, for they know not what they do".
You said, "CD and DVDs are just selling lock (sic) hotcakes." Yeah, so far OK.
And that, "people..listen to music and watch movies..." Now here you're off track. ZOMX doesn't fab CDs or DVDs for the entertainment industry, which is highly integrated vertically, and tough to break in to. ZOMX's biggest customer just announced that Win 2000 sales were not up to snuff. Smell that napalm?
And, "...the damn stats are fantastic..." Well, they WERE until the last quarter. ZOMX management, widely pilloried on this board and in the press at home, said it was a one quarter aberration. Their credibility, uh, leaves something to be desired.
If you believe JA, then the market's got it all wrong. If you don't, then this co's got a liar for a CEO and who knows what the truth might be. It's the cockroach theory all over again. Only this is a Minnesota company, so maybe a better way to say it is that it's the iceberg theory. Or maybe mosquitoes?
IMO ZOMX will miss earnings this quarter. The selling is overdone, but could continue till year's end with tax loss selling. It'll drop < $4 before it's done IMO. Buyback is not going to really take form until all the bad news is out. THAT'll be the best buying op IMO, and it won't be long. I don't want to sell at a loss, then be locked out from buying more for 30 days, so I'm holding despite negative expectations in the short run.