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Re: Tin-Berrygood post# 50327

Friday, 03/26/2004 11:52:41 PM

Friday, March 26, 2004 11:52:41 PM

Post# of 92667
Tin, I agree with you and think that it is important that we have reasonable expectations given several factors, including the overall market sentiment at this time.

HRCT's share price reflects the relatively low net profit that we have brought to the bottom line to date. The SEC issue continues to restrict our upside potential (IMO).

While we will certainly see some price appreciation on the 2003 earnings PR, I don't anticipate a bigger move for another 45-60 days.

Preparation for the listing application is not trivial. I would anticipate that DC would like to settle the SEC suit prior to making the application.

A good set of numbers on the 10K won't surprise most of us, but we would be surprised by a triple play of even better Q1 earnings, settled SEC, followed by HRCT announces application to the "" exchange. At 62 to 65 we would be a great buying opportunity.

As for the discussion about where we are now at 50 cents... Where should we be? MM's are not Specialists nor do they behave like Specialists to "support" a stock. Large block limit orders are not being filled (personal experience over the last two weeks). MM's have slowly brought the price back close enough to the 200 day MA that most trades are at the bid (selling) but careful not to break support of 47 cents to trigger additional buying. They are quietly accumulating inventory from those that become impatient and move on.

A break in support of 47 would trigger selling but would also be likely to cause a premature technical run on the rebound. The MM's would give back the shares that they are holding for a larger run. These are full time professional traders with plenty of patience.

Some HRCT longs have become impatient and will decide to change strategies and sell into this next run. There may be some money to be made on a swing trade; however, it is a risk to try to swing in and out when we know of several pending forward events in the next 45-60 days with a high probability to move us to the next sustainable S/P level.

P4S


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