über 0,01$ geht:
By: underwhere
04 May 2007, 04:02 PM EDT
Msg. 42167 of 42167
(This msg. is a reply to 42166 by lostmydoe.)
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Thats an interesting theoretical problem you present, lostmydoe. I don't so much follow the shares outstanding (though that is useful to note in certain contexts) as I follow the sales and profit margin. Just look at ADVC sales figures, mostly through Cybertest, this past quarter, and this past year. They are a multi-million dollar company. The basic problem they have at the moment, though, is that they are still spending more money than they are making. If they can generate significantly more sales, something which I think will happen with the likes of similar deals as the one they just did with AMT Service Corporation, I think its just a matter of time before they become a profitable company. (Interesting to think about why AMT Service Corporation would bother with such a deal with Cybertest if they didn't think Cybertest would be successful too, and presumably, they have far more insight into the business of Cybertest than we do.) Once they are a profitable company, I think a penny a share is going to look like a pea compared to the potential for this stock.
You're right though. A lot of people will sell at various points along the way, and that will continue to dilute share price potential, but smart people don't day-trade. They are in it for the long-haul.
I've been told by others that Danson has repeatedly declined to even consider a reverse stock split. For the most part, I think this is a wise decision since most of the time share prices seem to decline after a reverse split. (I'm holding shares of ABZA which have done just that after a 1:40 reverse split several months ago.) Still, I think this could be (and would be) very useful for shareholders if ADVC posts a profit on a per share basis. I'm looking for either a significant share buyback or a reverse split in the future once ADVC posts a profit and begins to pay down their debt, however small that might be. I think a share buyback would do tremendous things for the stock price, because you are quite right that with that many shares outstanding, it will be very difficult to maintain any significant upward momentum. Nonetheless, given the track record of this company concerning sales growth, I think its simply a matter of time before we see a penny a share, if not much more than that. I hold no grand illusions that it will get up to a dollar a share, though I think it possible over the next 3 to 5 years, but I probably won't be holding my shares that long. (If it does get up to a dollar a share, and I'm still holding my shares, I'll be a very wealthy person.)
(Voluntary Disclosure: Position- Long; ST Rating- Buy; LT Rating- Strong Buy)
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