Value Microcaps Motherboard

[researcher59]

10Bagger: THK

This stock was at $6 late last year, and even then there was a 'large overhang' of shares for sale. The overhang of shares is not the major factor driving the share price down since January. The problem is that management has disappointed for 2 consecutive quarter with terrible earnings. Their credibility has been shot. They have maintained guidance, so IF they can deliver, the stock will shoot up quickly imho.

The fact is that on no news whatsover the stock recently ran from 1.92 to 3.30 in just 5 days, a gain of 72%. That's impressive, and I believe only a harbinger of what can happen IF we get some good news on earnings. Most investors are pessimistic, but if optimism can be restored, the stock will have proven to be a bargain at $2. But if they disappoint again for Q2, then the stock may well trend down towards $1.50 or even lower.

Earnings are the big factor, not an overhang of shares for sale, imho.