Post by
StockMagician on Jul 13, 2017 12:31am
Cash value
I am constantly amazed to see how much bashing and pumping this tiny micro-cap stock gets - especially considering the low, low daily volume average.
Personally I find EUO to be a nice occasional quick trade money maker. All I have to do is place a bid for whatever level I consider the rough net of debt cash per share to be and wait for someone to give up on the stock due to the bashing, or due to locking in tax losses. Then all I have to do is offer it a cent higher and make a quick 8-10% within days. Do that 5 or 10 times a year and you are golden.
It keeps happening every time we pass the end of a quarter. Here we are in early July, Q2 ended less than 2 weeks ago, and by my own guesstimate, at 9 cents per share, it is trading at rough net cash value again. It seems that the market is once again assigning zero value to every business component of the company and to the GFI revenue stream.
FIne by me. I'm a buyer here again as I love getting free plays on businesses like this. Sure I know they now have only a few months before the stock might start trading at estimated Q3 net cash levels, which would be based on the published Q2 levels at the end of August. In that 8-12 week window, any good news from XwinSys or Xenemetrix or Croptimal could cause some value to suddenly be assigned to those business components again, and the stock price could jump maybe 20% to 50%. As I said, it is a short term, relatively free play bet that something positive gets announced.
I have no idea if today's croptimal announcement was positive or not. There just wasn't enough detail in the news release to alter the stock price much, if at all, for me at least. I think we need something a little more substantial and perhaps easier to digest, like a sale announcement for an XwinSys device. I'm still hoping to see something like that in 2017. If we don't by the end of the year, I'll give up on the idea and start focusing on EUO's other potential money makers.
As for the insane amount of pumping and bashing in 2017, just one question. WHY?
Tthe tech isn't good enough to warrant the kind of bash attack for this long. The expenses seem to limit the best possible upside to maybe 2-3 times the current share price. There are better stocks to attack with this savage, relentless, ferocity. There is no volume. It is too cheap to short for most of us. Too close to cash to even bother for pro shorters. So WHY?
And for the pumpers, same question. WHY? IF you had half a brain and your stock drifted down 25%, you should know you should be selling. IF it drops 33%, you should really be rethinking your investment in it. You obviously got something wrong with your original reasons to invest in the first place. Once it is down 50%, if you are still holding it with these huge losses, it is all on you. Stop blaming the CEO. Your losses are all on you. You have had lots and lots of time to reconsider your actions and correct your mistake. The fact that you haven't just tells me you are married to the stock or too stubborn to admit you were wrong. Or perhaps you got in under .10 like me and then it sort of makes a little sense - but only a little. I can forsee no possible good news that could double the stock in the last half of 2017. I can possibly see a move back to .14 or .15 on the best news that I can imagine.
News flash. EUO started 2017 at 18 cents a share. It closed at 9 cents a share today.
Unless you are buying in because it is trading at cash (for the moment), you probably shouldn't be long the stock at all. If your average cost is 13 cents, 14 cents, or even higher, my advice is sell all of your stocks and find a different way to invest. I don't think you know what you are doing, and I expect you have experienced significant losses in the other stocks you own as well this year.
Maybe this post craters the stock to 8 cents tomorrow, maybe it pops it to 10 cents. Maybe it has no effect.
Either way, it is fine by me. I just wanted to post this to ask why and hope that the posters give it some thought, and perhaps sell and move on, or you know, find a better stock to bash or pump.
Also, I'm not specifically attacking the pumpers or the bashers. When everything is valued at about zero, net of cash, no matter the stock, there could very well be a great case to be made that the stock is oversold. Pumping EUO does seem to make sense at this level. On the other hand, thank you bashers, as you are probably a decent portion of the reason I'm even able to buy at this level. Without you, I probably wouldn't be in EUO at all. Both sides can keep doing what they do as far as I'm concerned. It just seems very excessive when you see 20 or 30 back and forth posts by the two factions on days when EUO doesn't even trade 70,000 shares. And looking back at the past 20 sessions, it has traded less than 70k on half of the days.
If you are long, down a ton, and super heavy in EUO, give your head a shake and move on. Unless you really believe something is on the horizon that will break this trend line.
For the bashers, if you think you can bash it below cash, I think you are nuts, but please try - as it has happened a few times in the past. I love buying discounted cash. The opportunity never lasts long. The effort you bashers are putting in these days, well, it just doesn't seem to make any sense to me.