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Re: None

Wednesday, 05/09/2012 4:24:05 PM

Wednesday, May 09, 2012 4:24:05 PM

Post# of 5090
Irrational Expectations are always the problem with message boards filled with people that don't understand the underlying business model. No disrespect but If you are really expecting 8c in Q1 2012, please just sell your stock now and get it over with. The company said in pretty certain terms on the last CC that Q1 2012 will be very similar to Q4 2011 which makes sense but you need to understand their business to understand this. The company is currently in organic growth mode which is nothing more then a function of their settlement income. So as the settlement income grows their revenues and income rise. The settlement income through Q4 2011 and probably through most of Q1 2012 was coming from Texas (2 facilities). It takes 12 months for one of these new facilities to start kicking off settlement income. The company launched 4 new florida facilities late Q1 2011 - Q3 2011, and those facilities will start kicking off settlement income starting mid Q2 2012 (ie probably right now). So we will likely see the next jump in organic growth start to kick in Q2 2012 and in a big big way in Q3 2012. So you could have a scenerio where Q1 2012 is 3-4c, Q2 2012 4-6c, Q3 2012 7-8c, Q4 2012 8-9c. On its way to basically doubling that again in 2013. And if this type of rational and realistic growth rate doesn't get you excited given the stock is at 1.30, then you shouldn't be in the stock anyway.


Ian Cassel
Founder of MicroCapClub.com