I will give you my reason. I agree with sloop on the share dilution part as well.
1. Look at the foll numbers and compare with last quarter.
Revenue - Cost of revenue. Current Q ; 2222 - 1279 = 943 prev Q ; 2060 - 1125 = 935.
So they have just spent more money to get the same growth in revenue. Number magic.
2. Next look at the SGA. SGA was managed to get the EBITDA to change possitively.
3. Next look at Loss This Quarter is 56. Last quarter 658-603 = 55. So the loss is almost same. So increase in revenue did not result in much of a change in Loss even with the SGA being controlled.
4. Now for the Cash position. They have ONLY 811. Capex was 296 this Q. So at this rate the 811 will be gone in the next 4 quarters. Moreover they are in a Capex intensive field. The Servers/networking equipment, Storage etc are obsolete within 2/3 years. Just like our PC's. So they will have to spend, spend and spend.
These are just my opinion.
Please feel free to correct any wrongs in this message so I will be more informed in my investing decision. I really would like to hear of my mistakes.
Since the Insitutions have already sold out and we have seen a high of $14.99 in 4/2006, $8.50 in 4/2010 and the share count is now 325% higher, rather than being early, you may be quite late to join the party.
hmm may be somewhat.. but cannot be the only reason. What do u see in the near future.. I ma positive from TEchnical point.. the chart is kind of a bottoming out and is makign that saucer type shape with RSI well directed..