Sure the offering price was less than we expected. But still think this resulting selloff will prove to be an excellent buying opportunity. A year from now when the stock is in double digits, we'll wish we had loaded up in the $6's.
From today's PR:
"With this new capital, we now have a road map to bring Mast Out® to market," commented Michael F. Brigham, President and CEO. "Cash flow from sales of First Defense®has funded most of the product development expenses to date. This new financing will help us finish the initiative."
Hope you're right! Q3 was a rather dramatic improvement on the bottom line. Not sure if we can expect that kind of improvement again, but would love to see it. As far as not taking any of these huge profits, to each their own. I'm also watching the broader market, which has been terrible in 2016 and could get a lot worse. So that obviously factors into my profit taking. VSCP my biggest winner of 2016 by far! Happy to book the 40% profit when so many other stocks are down 20%+.
Stock is up 40% in a week and up 75% from last month. You'd be crazy not to lock a portion of those huge profits imo. Even if it's only 10-20% of your position. I think you'll get a chance to buy back a lot cheaper when the momo crowd exits. Sure the Q4 report later this month should be good. But with this dramatic rise in the stock price, people will be expecting it to be good. And there's so many things that can go wrong on an earnings report...especially with a microcap. If VSCP doesn't post a profit, if backlog slips, if the PPD news is a short-term negative, etc...stock will fall and fall hard. So why risk it? It's not like there's a chance they're going to earn .10-.15/share in Q4. We're talking EPS of a penny or two at best. Annualized P/E over 100. So even if they post Q4 earnings of .01/share, a lot of upside is already baked in at $4.50 imo.
Think you're right. Chart must look good or something. Seemed like we were gonna see a normal pullback this morning. But then the stock just rocketed over $4! And on a terrible market day too. VSCP up 40% in a week. On no news! Has to be momo traders chasing it now. I'm happy to be selling to them :)
Nice to see him exercise those options at $3.10. Wish we could see some outright buying tho. As hinted at on the last CC. Can't take that long to set up a buy program. They may have missed their window!
Yes the price was low. But understandable considering how terrible the market conditions were in January. ICCC got a bit unlucky. They were planning this for months. From the earnings PR in November:
Mr. Brigham continued, "Our registration statement on Form S-3 filed with the SEC for the potential issuance of up to $10 million in equity (subject to certain limitations) became effective on November 10, 2015. While we monitor market conditions going forward, we are also exploring additional debt financing to secure the capital necessary to bring Mast Out® to market, subject to FDA approval."
I think the good news is for investors who can scoop up cheap shares now in the $5's. A week ago, ICCC was undervalued in the $7-$8 range. The stock could still be back to $10+ by yearend if they continue their top & bottom line growth. Not much downside at this price, with big upside potential. My kind of stock.
I like the stock a lot, but don't think we should get too carried away. Guess I'd rather see the stock pop after a good earnings report. Rather than run up into earnings on high expectations, only to sell off sharply if Q4 isn't profitable.
Anyone on the CC? I'll listen later. Big revenues and solid earnings. But curious why they didn't include bookings or deferred revenues in the PR as they've done in the past. Maybe those numbers weren't that great?
You've been watching the stock market in 2016 right? Nothing to do with VSCP. But when the entire market has its worst open to a year in history, many stocks will suffer. I view it as a great buying opportunity.
Looks like it was all momentum traders who were chasing this one near the end of its huge run. When the momentum turned this morning, the bottom really dropped out. Now below $8.50. Wow!
Wonder why today. Would have expected a sharp pullback like this last week when the rest of the market was getting hammered. Wish I'd shorted some in the $11's this morning!
Risk is surely to the downside after the stock has nearly doubled in the past 2 months. But the markets are getting obliterated this week...NAII has every excuse to sell off or at least see some normal profit taking...and the stock is holding strong just a whisper below its multi-year high.
Congrats on the huge gain! NAII sure looking strong. Even with the markets getting pounded this week. Not sure who's buying in the $10's. Last quarter was great. But stock is closing in on a double. Buying a stock that's had such a monster run into earnings next month sure seems risky. Will take an absolute blockbuster quarter to see continued stock gains. Just a good quarter, the stock drops. And a disappointing quarter, stock gets hammered.
Yeah I agree. Getting rid of unprofitable lines with minimal growth prospects. To focus on higher margin, high growth areas. Don't see how this is anything other than a big positive. Surprised to see the stock down below $1.50, but I'll gladly buy some.
How are you figuring $15 based on fundamentals? With .18/share in earnings last quarter, plus the cash position, I think it's more a $10-$12 stock. And that's IF the great numbers last quarter are sustainable. History on NAII has shown that they aren't.
Possible but if you're an experienced microcap trader, you know earnings don't just keep going up. NAII has a history of lumpy earnings too. Stock has had a huge run from the $6's to the $10's. Expectations will be VERY high going into the next earnings report. The slightest disappointment and the stock will get hammered. The logical choice to to take some profits off the table before that report.