I have noticed while tracking the stock within market hours that very often trades occur of only 100 shares that are anywhere from .01 to .05 cents below what the stock is trading at. I thought " maybe there is high short interest and investors are trying to drive give the stock little decreases throughout the day so other investors will have a bullish sentiment about the stock."
Any ideas why this is happening?
Anyways this stock is trading at a .07 price to sales and a .4 Market Cap to Inventory. I repeat .4 MARKET CAP TO INVENTORY. That means the market values this company less than half of what its inventory is worth. I truly believe there is an arbitrage opportunity now that the stock is priced so cheap. The 52-week high is around $6 and I expect the price to reach the upper 3's sometime late this year.
This company has great growth opportunity and they have a solid business plan. It is true they did not perform very well financially the last year but that is not enough reason for the price to drop 75% within a year.
Look for this stock to rebound BIG in 2013. I'm in at $1.45
I agree it's very cheap right now. End of year tax loss selling with a very low trading volume created a perfect storm for you to buy low. I've followed for many years and I think you're buying at a very good price. It could be $3 with a little good news. The valuation on price to inventory is not the way I've looked at it to value the worth but anyway you look at it I think it's crazy cheap. They did have a bad year but IMO this is done and moving forward. Price to sales is also cheap but the profit is most important. It wouldn't surprise me to see them get to 3% net profit for ApplianceSmart stores at some point. That could be $.50 a share just for that. So there's very real upside earnings power. I hope they draw down inventory to $14M or less and pay down the debt.
I don't think you'll be waiting too long to see $3 a share. The $5-6 range might take a quarter or two of positive earnings reports.