The pattern I see occurring is that Calypso Wireless pumps for a while and then there is total silence for months allowing enough time to go by to allow new investors to cycle in then more pumping. Also what I see is that the stock price generally struggles a little more with each pump cycle (case in point this last pump cycle...the stock could not make it past 1.60 even with what some people might see as positive press releases) because of dilution and just flat out more selling occurring each time. Obviously the stock is going to have ups and downs, but I honestly don't see this stock getting above $2 again unless they show revenues. I do see an overall general trend downward, and I think it is much more likely that we will see it approach .65 before it gets close to 2.00. Of course, I don't have a crystal ball, but this is my analysis of the situation. Obviously, we are much closer to .65 than we are 2.00 anyway so it doesn't take a rocket scientist to make such a prediction.
Let's be honest. There is an extraordinary amount of downside risk/pressure on this stock. The company has very little money, and they are only surviving by issuing stock for money and services. This obviously is likely to continue, so the downside pressure will continue. The company has a total of 200,000,000 shares to issue. Currently approximately 113,000,000 shares are outstanding. I suspect that we will continue on this path of issuing shares so we will continue on the path of general downsloping of the stock price with momentary ups and downs based on press releases or anything else the company might do. Investors need to understand, though, that as time goes on more and more restricted shares will become unrestricted and the company continuously issues more and more shares for money and services, and with a falling stock price in general more and more people are inclined to sell.
(Posted July 15, 2005)
AI
