I was lucky to have bought this at the IPO for $8.25. My target for the year was $18 so I sold 25% at that price. I didn't think it would get this far this fast but if it reaches $20.25 then I'm selling another 25%. I like this stock but I do not see it staying at this level for long; at least not right now. I expect a big pull back in January so maybe I'll short it some if it is still around this level. I think it will deserve to be this value at sometime but sales needs to catch up to this price. Overall, this company has a lot of potential.
Pull backs in January are common after a good end of year run up. People take profits to reinvest elsewhere or help pay the tax bill. Pricing has now become a mystery because of the new shares and potential to release even more stock to the public. I did not anticipate this happening and it messes up my targets because it makes 22% more stock available. I was hoping for $18 before this release and now I think it has to be adjusted somewhere around $14. Earnings has to catch up to price and we don't have an idea how fast earnings will rise with the new technology. There is no history with the acceptance of this technology so future earnings is a guess right now. There is also no guidence from the company as to what they think 2007 will bring them. Based on $19 that the stock was, it should be priced at around $15 when the new shares are available. Still, I'm not complaining. I believe the company will do well next year.
well, now that there is another 7.5 million shares being put into circulation, it could be awhile till you see $20+. Also, lock-up expiration date is 12/11/06, whereby another 22% of total shares would be allowed to be sold that could put additional downside pressure on the shares.