Good morning NITE and other "market" makers. Yo
Post# of 5282
Posted On: 06/26/2014 10:44:02 AM
Good morning NITE and other "market" makers.
You seem to have gotten yourself into a bit of a pickle here.
The stockholders in TEVE are aware that the important roll of our stock markets of providing financing for new businesses has been transformed to a role as a government sanctioned casino. It is a sad state of affairs for our country but it is what it is.
I know you are part and parcel of the system and you are used to always winning, but occasionally things may not work out for you. I am afraid TEVE may be one of those occasions.
You see TEVE has been financed without your help. It is controlled by someone that has no need for your help. In the past few years with his support the company has transformed itself. It now has a new high margin product line that is growing rapidly. It is phasing out its low margin, low profit margin product line. Last year top line revenue growth was 43% to $6.4 million. That is a very small number and in a very large potential market.
A case could be made for an acceleration in revenues, perhaps a rapid acceleration. Perhaps revenues will double this year and triple next year. That would result in around $35 million in revenues in 2016. Still a relatively small business.
Those shares held by other investors are very aware of the situation. We are grateful to have the opportunity to invest in a company that really should not yet be publicly traded. An initial public offering would have been the norm and the "regular folks" like us would never have had the opportunity to participate.
An IPO of a high tech, highly profitable growing company would most likely result in a very high value at the time of the IPO. Hundreds of millions, billions; who knows?
So anyway, the situation being what it is, but in your own best interest you may want to reconsider your current strategy. If you would like to confirm the situation you could request the 2013 financial statements from the company. There are of course many other companies where your tried and true tactics will still work, but this is not one of them.
Enjoy your day of "trading".
You seem to have gotten yourself into a bit of a pickle here.
The stockholders in TEVE are aware that the important roll of our stock markets of providing financing for new businesses has been transformed to a role as a government sanctioned casino. It is a sad state of affairs for our country but it is what it is.
I know you are part and parcel of the system and you are used to always winning, but occasionally things may not work out for you. I am afraid TEVE may be one of those occasions.
You see TEVE has been financed without your help. It is controlled by someone that has no need for your help. In the past few years with his support the company has transformed itself. It now has a new high margin product line that is growing rapidly. It is phasing out its low margin, low profit margin product line. Last year top line revenue growth was 43% to $6.4 million. That is a very small number and in a very large potential market.
A case could be made for an acceleration in revenues, perhaps a rapid acceleration. Perhaps revenues will double this year and triple next year. That would result in around $35 million in revenues in 2016. Still a relatively small business.
Those shares held by other investors are very aware of the situation. We are grateful to have the opportunity to invest in a company that really should not yet be publicly traded. An initial public offering would have been the norm and the "regular folks" like us would never have had the opportunity to participate.
An IPO of a high tech, highly profitable growing company would most likely result in a very high value at the time of the IPO. Hundreds of millions, billions; who knows?
So anyway, the situation being what it is, but in your own best interest you may want to reconsider your current strategy. If you would like to confirm the situation you could request the 2013 financial statements from the company. There are of course many other companies where your tried and true tactics will still work, but this is not one of them.
Enjoy your day of "trading".
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