Is the board's concensus that API will languish around 2 until close to next earnings report? I ask because I now have a few thousand in long term gains and I have a few stocks I would like to add to my position as I beleive they will outperform API short term. The action after their latest earnings tell me most were not real happy with the results. It's always hard to dispose of something that you believed in and still believe.
It's my opinion that API will be bouncing around in the low $2's until some PR happens. I believe API is a good company to own, but it will probably be a long boring quarter before their next earnings release in late June. If you're willing to buy and wait, I think you'll be happy buying API. But if you're looking for short term gains, I suggest you go elsewhere.
First, API won't bounce back since there is no reason for it. You may argue that this company has positive earnings and I tell you so does the a Pizza place at corner of our street. Both API and Pizza place are in business of selling their products with one difference. Pizza won't change in next few years or nex few decades but electronic will change every year and you have to come up with new products to stay in business. So the Pizza place has more value than API since API products are losing their values every months and API is not replacing them with new designs. I was passing by a motel which still advertises room with color TV( most do). I went inside and ask the desk if the rooms with black and white TVs have lower rate. A young guy behind the desk said" Is there such a thing like black and white TV?" I told him yes but Hi Def TV is in market now and someday somebody may comment about the regular color TV like yourself. Hope you get the point that API management better run a Pizza place instead of hi tech company which is changing every day.
That's at least my take on things. But with these microcaps, you NEVER know. I for one plan to write a nasty email to the CEO regarding their lack of announcements. There's really no excuse for it because I recall they used to have regular releases before.
One good bit of 'news' is that the insiders have not sold (at least to our knowledge) at these levels. Since 4/24/02, insiders have bought a total of 125,100 shares at prices as high as $1.45 - the most recent purchase being at 10/21/03. That's a LOT of shares to be buying with their OWN money! In that time, not one single share has been sold by them. Not too bad. So when cash says the mgmt hasn't been talking, its untrue. They HAVE been 'talking'. With their OWN money. By buying. And by holding on at these current levels!
Cash will tell you that the revenue will dry up because R&D has been going down. But you look at the FACTS, and you look at the latest release, and its actually the OPPOSITE. The revenue is going UP and they expect to CONTINUE for next year as well! They must be genius! I nominate cash as the 'API Person Of The Year' Award!
www.savethechildren.org You don't have to be a genius to help the poor.