RE: Global Sell-offHow do we play this stock in light of the global response to the US downgrade in credit rating by S&P? (Note: Moody's top credit rating for the US remains in place, with no downgrade).
Trading in the Middle East today saw stock prices drop bigtime. Tomorrow could well be a big down day here. How long this will contiue is unclear. Maybe wait until more time passes before buying back in.
Looking for a silver lining. The markets are like roller coasters. Futura is no different looking at the past 3 years. There is opportunity to make money on the dips, but have to be on the ball. Futura stock has a 2-6 cent range in which to make money for short-term traders. Because of the once over turnover already, I feel downside risk is limited. The 3 cent level may be key. If price goes any lower maybe a buyer for the company itself may surface.
Cross-country auto dealer network signing up with Futura, Aeroplan re-seller. At 3 cents, market cap is only about $6 million. What they have should be worth much more. Too early to determine a fair stock value for Futura, as it's growing quickly.
Also, big money amounts are not involved in trading, therefore it's hard to gauge the true momentum of the stock. A million shares traded at 3 cents is only $30,000. Peanuts for some investors.
However, for long-term investors, patience is required until Futura builds up its partner base and revenues. There are shareholders (non-insider) with 4-5 million share holdings. These will not sell.