50% rise in market cap comingPaugh,
If you had posted earlier, I would have suspected that you were short the stock, but since you posted after the drop, I can only conclude you are not an experienced investor.
Financial statements 101 - accounting tricks are irrelevant, earnings are irrelevant, most of income statement is irrelevant (except to look that sales/revenues are increasing). What matters is cash flow, and then the subsequent use of that cash, or ability to gain a return on equity. This will then roughly translate into shareholder equity (minus dividend payouts). AF's accounting PR is irrelevant, if there is selling (which there is), it is for other reasons.
As for Alarmforce, look at the 5 year chart--do you really want to attempt to time the market on this one? If so you likely would have missed most of the run ups. AF has been undervalued at EVERY stage of its life. The growth has virtually been all through internal cash flow. As such, there aren't very many shares outstanding, and shareholder value is maximized.
As such, it is a thinly traded stock. There are always reasons to sell by investors, people need cash for all kinds of reasons. As such, if there is enough to unload, and there are alot of weak panicked hands around too, then a thinly traded stock can plummet quickly. A good number of volume on AF came in late on both Thursday and Friday--this is an indication that investors have noticed the drop, and are now buying in. Will more panicked investors sell, no one can tell, but I can tell you AF will be $10 five years from now. In fact, AF should finish 2005 with a bang due to its US expansion. While investors are sleeping, AF is quietly doing what it does best south of the border.
OK, stock timing wizards, wait for your $3cdn. As for investors, I would suggest loading up the truck anywhere between $4 and $4.50.
Orwell speaks!