RE: OrionThere are two people following MTM at Orion. The actual analyst and then a portfolio index technical guy. The fundamental analyst still has a target of of C$3.00 and says 2005 looks promising. The technical guy is essentially looking at the moving averages which have obviously been hammered due to a few institutional (likely Quebec QSSP refinancing shares) taking profits and reducing exposure to the sector and small caps in general.
When MTM was added to Farrell's techincally orienated index I was unable to actually see the number of shares he "bought" being bought. I have had this problem with other companies in similar adds/deletes and frankly on some low trading small caps it suggests to me it is paper trading.
Farell also cited the same reasons for turfing ZL today. My findings are easier to see with ZL than MTM. Farell said he sold 700K at 4.67. The only days that ZL was in this price range Orion actually bought 900 shares. So I wouldn't put too much into Orion's techincally orientated phoney sells, especially when their fundamental guy does see promise and has done some work on the numbers to support it.
Farell's portfolio seems to be following a buy high sell low strategy. Thankfully it looks like it is a paper based system. It is likely used as an internal benchmark to beat and would obviously make their active work appear better when the "passive index" stinks.
Shareholders are the unwilling bystanders of a switch in ownership by large holders during a lousy market period.
10 cents (which appears too conservative and includes some non-cash depreciation) with a lousy PE multiple puts a reasonable floor at the $2.00 area. Given that wireless is (aside from Nokia and their poor phone offerings) is taking off. See Lucent, Nortel, Nextel, Verizon, Ericsson, governmental radio system upgrades....MTM should do just fine.
Remember when you have bitten your fingernails off and are up to your elbow stop. Just stop.