Friday, June 15, 2007 1:54:12 AM
I want everyone to look at a couple of charts to show the path of a few companies that experienced relatively rapid growth.
Here is a chart of MSFT from marketwatch and you can click on the link below to find a better one on Google finance. Hit max to display the price since its ipo.
http://finance.google.com/finance?q=msft&hl=en
I don't want to give a complete history as you can find that on your own. But the price went from from .10 in April of 86', to .34 in April of 87'(will use April for each year), .40 in 88', .35 in 89', .84 in 1990, 1.50 in 91', 2.50 in 92', 2.50 in 93', and steadily continued it's climb from there. To put it into perspective, MSFT debuted with under $200 million in revenue to $3.80 billion in revenue in 1993. Also, MSFT came onto the market with only about 3.1 million shares.
The same thing can be said for DELL and many other tech companies.
http://finance.google.com/finance?q=dell&hl=en
This company may have the potential to have a lot of growth, but it is nothing more than that. Asset appreciation doesn't happen even with the potential for growth as there must be an impetus, a building phase to show that the potential is real and growth will indeed come. You can see the slow methodical rise in share price that Microsoft had from its IPO. It started with a marketcap of $77 million, had revenues, and was growing rapidly. There were plenty of opportunities to buy the stock through that time period.
Many here act like Rim will also experience the same rapid growth. Rim has several things working against it have any appreciation in price other than a pump and dump. First, way to many shares are outstanding. It's almost remarkable the share price isn't substantially lower. Even more problematic is the lack of any sort of revenues, let alone sustainable or substantial. AT&T, PacBell, or any other telecom isn't going to sign a contract up with Rim anytime soon because Rim hasn't proven their product in the market and that they're capable of meeting their demands. That doesn't include the billions of investment those corporations have made in other projects which kind of nullifies what Rim is marketing.
If Rim has what they proclaim, they will start to make small steps which will build up to bigger things. This is a gradual process and will take a substantial amount of time. The share price will surely not jump like many hope it will nor like they expect it to. It will take something very substantial to maintain even .50 (marketcap of $216MM) and it won't happen this year.
You can't invest in this company, it's nothing but speculative right now. You're more than likely to lose more of your investment than you will make anything from it. If you truly want to invest in the company, wait a while and see what actually develops. Make them prove their business model first and pick some shares up at .30 or .50 instead of taking a stab here in the dark at .07. If it does make it to .50, I would make a hefty bet it'd gradually get to a $2 because more than likely it may have a sustainable, proven business model. Of course, not many here took the opportunity to sell at .50 or above because you weren't objective about the company in the first place. They'll have to reverse split anyways before they can be taken seriously by the investment community.
Here is a chart of MSFT from marketwatch and you can click on the link below to find a better one on Google finance. Hit max to display the price since its ipo.
http://finance.google.com/finance?q=msft&hl=en
I don't want to give a complete history as you can find that on your own. But the price went from from .10 in April of 86', to .34 in April of 87'(will use April for each year), .40 in 88', .35 in 89', .84 in 1990, 1.50 in 91', 2.50 in 92', 2.50 in 93', and steadily continued it's climb from there. To put it into perspective, MSFT debuted with under $200 million in revenue to $3.80 billion in revenue in 1993. Also, MSFT came onto the market with only about 3.1 million shares.
The same thing can be said for DELL and many other tech companies.
http://finance.google.com/finance?q=dell&hl=en
This company may have the potential to have a lot of growth, but it is nothing more than that. Asset appreciation doesn't happen even with the potential for growth as there must be an impetus, a building phase to show that the potential is real and growth will indeed come. You can see the slow methodical rise in share price that Microsoft had from its IPO. It started with a marketcap of $77 million, had revenues, and was growing rapidly. There were plenty of opportunities to buy the stock through that time period.
Many here act like Rim will also experience the same rapid growth. Rim has several things working against it have any appreciation in price other than a pump and dump. First, way to many shares are outstanding. It's almost remarkable the share price isn't substantially lower. Even more problematic is the lack of any sort of revenues, let alone sustainable or substantial. AT&T, PacBell, or any other telecom isn't going to sign a contract up with Rim anytime soon because Rim hasn't proven their product in the market and that they're capable of meeting their demands. That doesn't include the billions of investment those corporations have made in other projects which kind of nullifies what Rim is marketing.
If Rim has what they proclaim, they will start to make small steps which will build up to bigger things. This is a gradual process and will take a substantial amount of time. The share price will surely not jump like many hope it will nor like they expect it to. It will take something very substantial to maintain even .50 (marketcap of $216MM) and it won't happen this year.
You can't invest in this company, it's nothing but speculative right now. You're more than likely to lose more of your investment than you will make anything from it. If you truly want to invest in the company, wait a while and see what actually develops. Make them prove their business model first and pick some shares up at .30 or .50 instead of taking a stab here in the dark at .07. If it does make it to .50, I would make a hefty bet it'd gradually get to a $2 because more than likely it may have a sustainable, proven business model. Of course, not many here took the opportunity to sell at .50 or above because you weren't objective about the company in the first place. They'll have to reverse split anyways before they can be taken seriously by the investment community.
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