I have traded in and out of this stock very successfully for 2 years - getting out in May before earnings after buying the March dip. I was going to buy in again when I saw the stock price go below $4 last week. Read her post and theory for a $4 handle. Went to the mountains for a few days to escape my coastal heat without a "limit order" in . Came back yesterday, darn (or yea!! for me)- stock price under $4.00.
Guess I will wait for $3.25. But add to her reasons my harping on the management excessive options target that could represent 60% of the current share float in 3 years, excessive severence payments, and the fact that for this year the stock broke $5.00 for a good time and now some mutual funds can not own it. This company is very shareholder unfriendly.
See y'all around $three. Small stock lovers - try VDSI for a better stock to play in small cap trading. They are hitched to the success of banks who want security software.
Hottie seems to be a very successful SMBL short who escaped any cheerleaders foul wrath by writing discouraging posts very nicely. Loving good products does not necessarily make a good investment criteria with an overdebted, shareholder unfriendly company that consistently underdelivers on their plan.
I'm actually not short. I bought last time at $5.07 and sold it after a $.50 gain. I didn't feel comfortable at that price, for the reasons I put in my previous post. I am amazed that it nearly went to $7.
I use the spread (one a month, maybe)and the oil (I've had one bottle for a few years now).
I just think people with real money on the line need to see all angles. Just giving my view on where I may put money on the line and feel good about it. Traders can gamble here for a possible 10% gain, but it could easily drop another 20%. Until there is a solid reason to own it. Buyout rumors aren't a good reason. The spread can be duplicated after the pattern runs out so why buy out the company now? It would have to be VERY cheap for that to be a possibility.
Thanks Squid for the new stock tip. I'll watch it until I'm comfortable.
When they get debt and shares outstanding down it will be worth $4.50. Hopefully they can do it before their pattern expires on their top product. Without positive growth, this could see $3.25 pretty easy. You have to ask yourself, what if the milk flops and somebody makes a very similar spread? Or the exact same spread after the pattern expires.