RE: RE: RE: Soaking it upI'm with you jack. SVC is a stock to watch and the current price is a bargain.
I get a kick out of investors who blame companies for what are personal investment errors and generalize their experience to the investment universe.
It is the people in the companies who are working hard to build value. Investors in the secondary market are really parasites. We are trying to profit from the work of others. But ain't free enterprise wonderful!!!!
I've been in and out of SVC a number of times the last 2 years. Although my timing has not always been perfect I have more than tripled my portfolio since 2009 primaily by riding the SVC wave. And I'm a newbie to this game. Took over my trading after suffering from professional "buy and hold forever" management and getting killed in 2008--2009.
My strategy has been to reinvest 50% of my trading profits in Canadian dividend paying stock and 50% back into SVC on the downside so I've grown a substantial SVC position.
I sold my entire position earlier this year at $3.40 (average acquisition price was $2.20) and reinvested last week at $1.72. I may get killed, but that's the chance one takes trading. I feel sorry for the folks who bought in the $6-7 range a few years ago. I'm not sure SVC will hit those numbers again, but it is a solid company that can be expected to trade in the $1.50--3.50 range, in my opinion. A couple of decent sales and profit quarters will ignite the stock price.
This company is solid in many ways.
No debt. Enough cash on the books to keep it afloat during a down draft and a management group that has a record of success. The loss of Comcast a few years ago might have killed many other companies, but these guys fought back.
SVC inow has very diversified customer base, both geographically and by customer type.
SVC is offering technology in a growing demand space. S
VC couId be a takeover target soon. CISCO is certainly a possibility. Frankly, I hope they are not taken over soon. They are at a bargain basement stock price that is not a reflection of their performance nor potential. They are also focusing on cost containment with much of their work moving to India. They continue to attract new customers and increase revenue, but they need to contain costs. Look out if they can get both sides of the profit equation working in their favour.
I don't think I'd buy and hold any small cap tech stock long term, but if you have the stomach to ride the wave, serious money can be made with SVC. But it ain't easy. I've had a few sleepless nights when I've been on the wrong side of the bet.....But if you can't take a scratch, don't put skin in the game.
I have the advantage of living in Waterloo and the folks I know at SVC are busier than heck! With the recent RIM employment situation, companies like SVC are picking up talent without paying a premium for it.
All I can say to Mr. Caputo is: "thanks and keep up the great work".