Re: First good idea
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A super simple TA system is currently predicting one of two outcomes:
1.) Based off the the September highs, price is going to mirror the initial 7.5 point drop from 14ish and trade down to about a buck-fifty
2.) Based off the the September highs, price is going to mirror the initial 50 percent drop from 14ish and trade down to $4.50.
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Depending on any short seller-base in the stock, it may cycle a bit higher as bears realize some very healthy profits. In this scenario, I suspect some short covering will occur and eventually price will settle around $4.50 and churn sideways for the foreseeable future (it is a "rotten tomato" now).
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My guess is it trades toward a market capitalization of about $50 million (about $2.70 based on reported issued & outstanding shares) before either getting it's act together or getting delisted and vanishing onto the OTC-BB.
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This is what I love about TA. Four different answers, and one of them guaranteed to be right.
Interestingly DSUP came up in a discussion with some friends who researched it. I give you their (pre-refinancing) comments.
"My somewhat charitable characterization of DSUP is their business earns a lumpy 10% ROIC (excluding badwill). Perhaps not a terrible business if you lever the assets 50% at 6% interest. Unfortunately they're levered 120% at 12%. "
"What a classic IPO case study. A single year of revenue growth and lots of lipstick = ka-ching."
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