Why people are selling MAXF - raging bear market, disenchantment with owning stocks in general, unhappiness with MAXF management salary and option plans (I disagree but I am only one shareholder, the herd has spoken on that issue), possible fund selling as they face redemptions and need to raise cash, etc.
Where is the pop-up - can't tell you when, I invest based on valuation and future potential. When I find a company with a ton of cash and tangible book value, strong cash flow, a trailing PE under 5 and a plan for growth, I load up and just hang on.
Maybe it will pop in August, maybe it will take six months. There are two distinct audiences here, the "OH MY GOD MAXF DROPPED WITH THE MARKET AND WONT' GO UP!!!!!!!!!!! WAAAAAAAAAAAAAAAAAAHHHHHHHHHHHHHHHH!!!!!!!!!!" and the value investing crowd who buys stuff when it's cheap and tucks it away for better days.
I really, really think that anyone who is pissed off with MAXF's stumbling should SELL their shares now and give them back to the Market Makers who have an interest in seeing the share price go up and won't clutter this message board with their incessant moaning and whining.
If you don't like MAXF, please get out, I mean that sincerely to everyone here. We don't need the confusion and panic and selling all the way up once the market finally regains its confidence.
I have owned MAXF for a year now and will probably be here a year from now if their growth plan goes well.
FWIW, my portfolio has beaten the markets by a very wide margin since 1997. I am not as successful as the good short-term traders but my overall approach works - if you give it time.
That said, everyone should make up their own minds for their own investments. I am very comfortable with what I do.
As usual you've written a very convincing and articulate post. I have a very small holding of 3,000 shares and plan to hold them for the very long term.
However, there's one factor missing in your argument that continues to concern me. I still need to be convinced that management cares for the interests of minority shareholders. I've seen too many cases, especially in firms where the primary asset is "brainpower," where management's primary concern with respect to public shareholders was to get them to sell out as cheaply as possible. I've seen no evidence that such is the case for MAXF. However, regretably, I've seen no evidence that such was clearly NOT the case. Good luck to us.
If I had not moved overseas, I would have attended the annual meeting to get a better feel for management and their attitudes. I can only guess from what we see in official statements and the secondhand reports from the meeting.
The CEO refused to offer future guidance - clearly, he doesn't want to play the "did we meet or beat someone's number" game. My gut feel is that they plan to build their business, draw Wall Street-level salaries in the process and possibly double or triple the firm's net worth if they can become a larger player in their specialties.
They get rich, we make money on our shares. That's probably the extent of their concern for shareholders.
Frankly, MAXF strikes me as a company that probably should not have gone public at all. But since they are, we have an opportunity to buy value cheap and see what management can do with it.
What are the alternatives - larger cap companies struggling to keep up their profits, blown out microcaps with no profits and penny-stock share prices, boring small banks and S&L's with 10-20% upside potential if you are lucky, or cash....
When I look around at the possibilities I am content to hold my MAXF lot and see what they can do in a very rough market and a shaky economy. Selling out cheap is not on my agenda.