In my humble opinion here is how start-up public companies work:
1. The company is launched and has a lot to prove to investors. A few small swashbuckling investors, like many of us, get in early (at trips) and watch as management buys paper clips for the office and assembles a team. The stock stays low and moves sideways for months.
2. Then after a period, say a year, others start to hear about this entity ensconced in a new wave of product (Medical M) and get excited. They have a bit more cash to toss at the company and a couple of them even invest six figures.
3. Then the big day comes where it seems real stuff is happening like studies, and even a partnership with a foreign company, say in Germany. One day(s) some of the original investors, and second tier watch this small office at the end of the hall look very real and a possible player in this new economy. And the stock takes off to $3 (God i miss those days). Some of us believe we are sitting on a $100 stock (like another one we know).
4. And then a certain reality kicks in, and people start to realize we're simply not there and the news coming out is fine, but not enough because there are no sales/revenue yet. So it dips, dips again, and then....dips again. We give back boatloads of unrealized profits and sob in our sleep because that dual engine boat we were about to put on order continues to sit in the show room, not our drive-way.
5. The quiet occurs. It's like being awake at 4:30 a.m. You can't sleep and you watch the stock, day in and day out hoping for a return to the old/new days of $3 always hypothesizing on the greatness of management, the companies plans and even operations. There is no debt to speak of but still no sales, so we sit and wait latching onto any good news but being critical of stupid little things. Slowly but surely we start to hear the traffic pick up outside and the stocks graceful and aggressive ascent begins again. Revenue are reported. A few million here and there and then the big deal, and we are golden.
That is OWCP. We need to remember we bought a start-up and they take a lot of time to grow. They will fool you a bit (like those good old $3 days) but in the end, move according to real dynamics. OWCP is a decent start-up and I believe will pay off.
Go OWCP Go! I can here the rumble.
