Today is a very important trading day for Procera & Allot relatively speaking since many of us judge this Company by the day and the manner in which it trades. I am very aware volume is anemic not concerned about that because as i mentioned before seller exhaustion / natural sellers are out of this name. At the same time Buyers are approaching currency tenuously for several reason . 1) On the Institutional side no Liquidity unless they are on the bid side and a seller comes to them. 2) This space and this has been abused by the shorts , a macro thesis of carpet bombing companies that derive a good portion of their revenue from Telco CapEx. 3) Yesterday two very visible Companies AT&T & JNPR communicated to the street disappointing news. The AT&T cut back on CapEx on the facade could have been enough fuel for the fire to embolden the shorts to turn up the volume and continue on their business as usual aggressive ways. That news yesterday is more than enough to give buyers a pause / step back and see if stock comes to them and as i mentioned before adds fuel to the exiting short sellers thesis. One very important fact although it has not ameliorated shorts wrath towards our currency of choice. The Capital initiative for the DPI / IPE initiative is a pimple on the #$%$ relative to their budget and return for them is very tangible & necessary for so many reasons i will discuss that in another post.
the question isn't whether this is the bottom. the question is will funds either add to their position or will new funds open a position here. the answer is clearly yes. whether this goes to 9$ or not, doesn't matter. funds will add to their position or open one. the stock is rediculously cheap. the company should really buy back a lot of stock here. there is a low point in the space. time for the company to retire shares. do something for longterm shareholders. management needs to do this in the coming week when they get off the quiet period. throw us a bone here.
I think it is most unrealistic to hope Procera will buy back stock in an effort to raise the price of their shares. A company should focus on growing their business and making a profit not attempting to manipulate the share price. For a small growing company it would be foolish to deploy cash reserves in such a way, those funds are there to provide strength to survive during difficult times or make aquisions that would enhance their core business, that was why the funds were raised in the first place.