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At 06:34 PM 6/22/98 -0600, Gonzo wrote:
>I did some calculations on Omega Research stock using there quarterly
>reports. The company is worth after subtracting liabilities.... About $1.17
>a share.. Maybe a tad more if I take into consideration earning power. I
>cannot believe that people paid in the area of $10 a share. I was hoping
>that the stock might have over reacted and was a bargin. But I see that
>even at its lowest point of $2.38 it is still priced a bit high for me.
>
>Any thoughts? Maybe after this message the stock will shoot up.... *Grin*
>
>
I agree with you the stock is priced fair but its hard to determine any
stocks value
looking at a balance sheet. Look at most up start telecommunication
companies for example ICIX stock went from 14 to 90 and never a made a dime
and owe a bunch of money. Two reasons I found to be why the stock ran up
one, they spend a ton of money procuring access agreements for future
business in all the major cities. Two they do a lot of resale of long
distance with the baby bells which does provide real revenue and keeps them
solvent. So then you have to figure somebody's going to have to buy them
out. Problem is I didn't see this until the stock went up and I looked to
see why an after the fact made no money but I learned something. Money is
cheap so all the big fish are swallowing up the smaller ones as fast as
they can. So I took that to the rental business which is hot right now and
did makes some money buying IPO'S that had fallen down and its still going
on. When a company sells it a rule of thumb is to figure two and a half
times book value as a price of the buy out. Looking at Omega who would be
interested in buying them and second whats the short interest in this
stock. Its very hard to make money in cheap stocks I've found the leverage
is attractive but better results can be had going to higher priced stocks
in my opinion. Thats why I trade commodities but if I can buy higher priced
stocks at least over 10 to 15 dollars for a good reason which to me is
management and growth I will. Canadian stocks are the worst, most are shell
companies and then they hire what we call paper hangers and just lie in
print. You would be surprised at the people who still will believe it if
its in print. Even more so at some of the lies these scamer's do tell is
amazing. One I remember is a gold mine that had so many nuggets on the
ground they bought bob cats front end loaders to put them in, LOL I swear I
can't remember the name right now but I will later is a true story.
Robert
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