"As with any new product, there have been a few delays in the manufacturing process and unforseen challenges associated with the sales and marketing of the Synergie product line during the first quarter of fiscal 1999. As a result, earnings may not be as strong as originally expected in that quarter. Nevertheless, the Company remains optimistic that as production processes and sales methodologies smooth out over the first two quarters, the fiscal year will yield a strong increase in earnings, compared to 1998."
I don't see in here where they say the earnings in the 2nd quarter will be lower than the first quarter. Also, some investors may have interpreted the original 8-12 cent range as allowing for some wiggle room in managements estimates--since, they did not revise their annual numbers. If they did, then the jokes on them, because DYNT has said that the 2nd quarter numbers are coming down, and 40 cents for this year is out of reach.
A lot of micro cap stocks have been trading at a P/E of 8-12 lately. At the price this stock has been you would assume investors were figuring on 40 cents. A year ago the stock was at $1 and earnings are up 250% which you could safely say its worth $2.50 now. For this I think the stock has been a little over priced, but since the drop it seems like a good time to pick up a few more shares.
As far as my outlook, obviously it's a different ballgame now. There's more risk as to whether or not they'll meet their original sales and earnings projections. I'm not going to guess when their sales will get back on track, because I honestly don't think even they know. There's a big question mark as to how many of those 'leads' will turn into actual sales. To hear them (mgmt) talk, they feel that there's potentially more reward now because the market is less mature and therefore there may be a potential for explosive growth. As for myself, I'm going to stay long to see where this thing goes. I got in at a price that lets me sleep at night - even at these levels. Although if it goes much below $2, I'll be needing some nyquil.