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otcbargains

11/15/17 10:31 AM

#41243 RE: Knowledge is King #41238

If it were any other stock and I had not been watching it for as long as I have I would look at it and say WOW

A clean mil fully taxed in one Q, Look at the improvement in the balance sheet, look at that Cash flow.

Sure they sacrificed profit margin to get the new products into the market but shoot even with doing so managed to put up .021 eps in back to back q's. Pretty darn great for a stock trading in the .40's.

Selling at a market cap that will be less than 1/2 this years revs.

Any other stock I would expect it to move up on this report. Especially in this sector where their peers are trading in the 25 to 30 p/e range.

BUT since I know this one so well and how it trades I fully expected it to tank today and I was hoping to sell some and average down because I think if they are successful in creating interest in the new products and they do away with the rebates they can get some super eps numbers in the future.

It is a long term hold for me now and I still think it will work out but I don't know if the eventual profit will be worth the time I will have to hold it.

Maybe the co continues to give away their products and pay bigger names to rebrand their products and they end up breakeven on a bil a year in sales. That appears to be the strategy.

Basically to answer your question, I am not happy with the report but it is way too cheap for me to go all dump tard on it.

Will look to average down and hope that this is the last time they don't beat a comp but there just never seems to be a good time to buy this one no matter what the fundamentals are.