I'm a novice trader and I currently have 5000 shares @1.90 so I'm a little down now. I have been following your comments and feel you are very intuitive on what is going on with this company. My question is after the completion of the bankruptcy restructuring - my IDS shares will be replaced with common shares for the same amount, correct? Also, if this is calculated to go above 3.00 why isn't everyone buying shares at todays price? Should I be averaging down at this point?
Correct. The reason OTT is trading at its current price is because of a variety of reasons IMO. Most notably investor sentiment. When you have a security that has eliminated its dividend & interest payment and dropped in price from the teens to a buck and change within a year that can make some people leary. OTT management (again IMO) has done a marvelous job navigating through a perfect storm of having its largest client go away coupled with the government piling on pain with its new (and negative for OTT) rules all within a year. Because what some of us think OTT is worth is not currently reflected by the market price is how large gains in securities are made. Because we don't agree with the masses does not necessarily mean we're wrong. Is there risk? Yes. However, I think the risk/reward potential in OTT is outstanding. Even moreso right now than in mid-November when I began accumulating units. A number of uncertainties have been removed since then.
I believe today's prices are even smarter than the November quotes around $1.30/unit.
Always do your own DD and don't listen to what anyone on a yahoo message board says. But your 5K OTT were purchased at an average price of around $4.90/unit lower than the 1,257,347 OTT units a very smart individual named Ira Sochet bought his at. Congrats.