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Edgewater Technology Inc. Message Board

  • donni_l donni_l Sep 29, 1998 12:50 AM Flag

    Why Is This Stock Suffering So Much?

    ?

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    • I agree with some of your assessments, especially
      about potential stock dilution. However, even if the
      number of shares outstanding DOUBLED overnight, that
      would still only put the p/e at 15 at the current
      price. And this for a company that is growing at a 30%
      clip and has revenues (500 MM+) that are 33% higher
      than its market cap!

      As far as a downturn goes,
      it would appear that such an event might actually be
      *beneficial* to STAF, because, IMHO, more companies would be
      downsizing and replacing full-time staff with less expensive
      temporaries who could do the same job. At the same time,
      downsizing would result in a larger number of qualified
      people entering the temporary market, potentially
      boosting the quality level of STAF's labor pool and thus
      making it even more attractive to companies seeking
      temps.

      Another thing is shortselling. Your points 1 and 3 seem
      to be contradictory, so I would appreciate a little
      elaboration. At any rate, look at what happens when just a
      piddling few shares are sold-- the stock goes DOWN! If
      that isn't "short bait" I don't know what is. At the
      same time, STAF is mostly traded on the Nasdaq, which
      is not really known for its policing of where the
      shorts are coming from. Thus, the *official* short
      position of Nasdaq stocks is often at odds with the
      *actual* position.

    • Short interest here is less than 1/2 day trading volume.

      Very low short interest.

    • hi,

      i am considering a purchase of this
      stock - but you ask why it might be falling?
      first -
      it is probably not short selling - look at the short
      interest and short ratio in yahoo.
      second - look at the
      price/cash flow - 17 - that is significant.
      third - look
      at the short ratio - not the best.
      fourth - there
      are a number of acquistions - these must be paid for
      by cash and stock - look at the most recent 10q -
      management discussion
      "The Company is obligated under
      various acquisition agreements to pay additional
      consideration,
      which will be paid in a combination of cash and Common
      Stock, to certain former stockholders of
      acquired
      companies. Management believes that neither the total amount
      of these contingent
      payments nor the specific
      combination of cash and Common Stock consideration can be
      currently
      determined. Management believes that its cash flows from
      operations, the Credit Facility and its
      ability to issue
      equity or debt securities will provide sufficient
      liquidity and capital resources to satisfy
      these
      obligations."
      that statement raises interesting questions.
      the
      10q discussion also said that the company was trying
      to obtain a new bank line to raise the limits and
      lower interest rates. there is a news release that says
      that the credit limits were increased - but were the
      rates lowered?
      fifth - there is concern about a
      downturn - temporary agencies suffer in recession because
      their workers are not as much in demand.
      sixth - the
      general market trend is down.
      so i am still
      considering and investigating - maybe at a lower price.

    • Why is the bottom falling out of STAF's stock
      price? I'll tell you why.

      1) The company is not
      doing enough to promote itself.
      2) There is little
      nationwide interest in the stock. Look at this message
      board, for example-- there's hardly any activity.
      3)
      There are only 8 analysts that are following this
      company, and 7 of them are VERY small. The 8th analyst,
      A.G.Edwards, which is STAF's market maker, appears to be too
      far away from the action (New York) to make much of a
      difference.
      4) Someone previously asked, Why would anybody be
      stupid enough to sell at these prices? The obvious
      answer is shortsellers, who do not invest in a stock but
      rather borrow someone else's shares and dump them to
      make the price go down. Look at this stock, it is a
      shortseller's paradise! Sell 100 shares, and the price drops 25
      cents. Buy the same number of shares back, and the price
      doesn't move. It looks like investors have to buy 2-3
      times as many shares as they sell just to maintain the
      stock price.

      Unless something is done soon,
      this downward trend will likely continue to be a
      source of nightmares for us investors. What should be
      done?
      Well, how about this...

      The market maker should
      do more to promote this stock to the general
      stock-buying public. If all the fundamentals are as good as
      they seem to be, some well-placed promotions should
      help to buoy up the stock price. For example, nearly
      all the stocks that I have followed that were
      mentioned in Business Week's Inside Wall Street column have
      gone up afterward. With such good fundamentals despite
      the depressed price, this stock should be a shoo-in
      to gain investors' attention.

      Another thing
      to do is make your voice heard at the shareholders'
      meeting! Unfortunately, I will not be able to attend
      because I am too far away, but if any of the rest of you
      can attend, please do so, and let the management know
      that the current price level of the stock is
      intolerable!

    • As well as YOUR CURRENT SHAREHOLDRES, CLETE!

      Speak Up man. Show us that you can make it happen.

      OR GET SOMEONE WHO CAN!

    • How about a "preannouncement" of 3rd quarter
      results telling investors how great business is going?
      Otherwise, I think it's going to be an agonizing few weeks
      'til the official announcement, the shareholders
      meeting on the 27th, then Walter's stockholders meeting
      on the 28th. I know you guys are restricted as to
      what you can and cannot say right now, but at these
      prices, isn't Robert Walters having second thoughts? It
      looks like Wall Street could use a little
      reassurance.

      SM

    • It looks like the Stephens analyst is trying to
      cover his ass. He went through his entire list of
      staffing companies and began reducing ratings from 'buy'
      to 'outperform.' He didn't change his estimates or
      rating on StaffMark, but he reduced his price target
      from 50 to 29. I think he's spooked about a recession,
      and his job depends on his accuracy. 50 does seem
      unlikely when you're trading at 15, but when you factor in
      the estimated earnings, he's "awarding" StaffMark a
      P/E of 15.

      SM

    • DTD,

      What stock was that?

    • Posted that last message on the wrong board.

    • this stock is the dog of the decade! When are you
      lemmings going to wake up and realize this stock is going
      in the
      crapper.


      hahahahahahahahahahahahahahahahahahaha!!!!

      i'm short and rolling in the dough! I took a short
      position on this stock right before it split i love it!

    • View More Messages
 
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