I've seen this before in the land of boring stocks, stocks such as ELTP.
"What have you seen, how dumb you were to buy such a stock as ELTP?"
This company has almost zero following because it deserves no following. It does have some good items in its defense.
1. Patents
2. A partnership with Gold Bond mattress
3. A director very well in tune with latex
4. It has another division dealing with sleep, perfect combination considering how boring it is.
5. It has had a lot of insider buying.
The negatives are:
1. Thinly traded
2. No recent insider buying, at least not as it has been. Possible reasons: Quiet period for possible merger/buyout or management knows something bad is coming.
3. No exciting revenue.
4. Price of stock is falling because there is no interest, owners wanting to exit are at the mercy of the bid, which is at the advantage of those offering little and willing to wait.
Now, as for what I'm thinking is that in OTC land there are many delusional investors and a few savvy ones. The way this stock has been acting the past few months shows good news=dropping price.
In August the earnings will be out for business up to the end of June. I'm thinking there will be revenue plus some news of other merger/buyout/signed contracts, etc...
If this occurs the pumpers will appear, some 'pennyland' guru's will tout the company, (such as Sierra World) message board traffic will increase and the price will quickly go up (this is where i exit) and then the price will drop again.
This company is boring, the management is boring, the news is boring, and I hope what I'm thinking occurs so I can exit and move onto a company not soooooo boring...Zzzzzzz snore....
