To me, BrandPartners looks bullish, bullish, bullish. Here’s the long term picture as measured from the low last summer.
Just as hoped for in the 5/17 blog on BPTR, the 61.8% retracement level turned out to be the perfect entry level for accumulation.
The long term picture for the stock looks outstanding. The stock made a 131% move from August to March. This year, a similar move would take us to about $1.60. If the stock can trade above the March high of about $1.15, new highs should come into the picture, along with an upgraded listing to the AMEX.
BPTR seems bullish, but what is the reasoning behind the 1 cent drop in price at market close (7/19/05) after they announced $3.7 million in new contracts. I have a good feeling about this company, but why is it so undervalued? Thanks in advance.
Editor: Why it is so undervalued is the big question. I believe it is because the management has not been good at getting the story out. In my view, a $.01 drop is meaningless after the move the stock just made. I’m not concerned about a little pullback, but more concerned about how high it might go.
You mentioned that you have recently spoken to J Brooks but you have not yet posted your comments regarding this. How does he respond to your comments regardinf poor IR campaign and what is the current state of business
Editor: I was mostly trying to ascertain the tone of the June qtr. I didn’t get much information, but I did get the longer term overview. There is some huge new business on the horizon if they can land it.
I’ve been accumulating this stock because it does seem grossly undervalued, but a couple of things (read: problems) may be contributing to the low valuation: (a) declining revenue growth, and (b) high debt/equity ratio (over $10M in debt). Any thoughts?
Editor: I believe the growth rate has declined in both the March and the June quarters. However, there is still growth, and they now have a full pipeline of new business in both Europe and and the US in new market segments. As new deals come in, this should restore the high growth rate. The existing business keeps chugging along at about the same rate.
The debt to equity ratio could be better. In the March quarter the serviced the debt and still made about $2 million. Sure- it’s not perfect, but it’s definately and absurdly low valuation. When the stock trades more favorably they will probably do an equity financing and take out the debt.
Technical indicators are set for a go……after BPTR maintains above $.88 for a short while it will rise steadily. Also very bullish on this stock and am looking for a relisting on the NASDAQ or AMEX.
Editor: Hoping to see some volume materialize. If it happens, I believe the stock is poised to attain the $1.25 level, which might get them to AMEX.
Is it the good moment to buy?
Editor: it depends on your time frame. I believe the stock is very undervalued. I believe the stock could be much higher by year’s end. If your time frame is months, then yes. If it is days, then I don’t know. I don’t know when the stock is going to wake up.
What do you think about the results?
Editor: See today’s edition.
The stock price is absolutely terrible. What is happening? Why is it falling? Who is possibly selling now?
Editor: I have no idea who is selling and have no way of finding out. People sell stocks all the time for a variety of reasons. Some relate to the company, some don’t. If you are concerned, simply sell the stock and get out. This one is obviously going to require some patience. If you don’t have the patience, simply sell the stock and get out. If you bought it when we first featured it, you should still be in the money. If you bought it a the higher end of it’s trading range, your loss is not horrific.
I sold my stock several months ago. (and lost a ton on 100,000 shares)It became a real” stinker”. Now I see a 1,800,000 share order was put up. What a PIG. John
Editor: I’m not sure how you can have lost a ton as I first featured the stock at about $.65. However, if you bought at the top, and then sold at the bottom, that would make you a typical retail investor. Find the companies you like, then buy when they are quiet and no one wants them. Clearly, someone likes this company at $.84. Doing some research on that order, and hope to have a BLOG posting this week on it.
By the way- I agree with you characterization- this one has been a real stinker- especially when you compare the corporate performance to the stock price.
What is your opinion on the conference call and recent filings? I hear determination and a good number of innuendos for larger pieces of business?
Editor: I didn’t hear the call because I was travelling, but I know what you are referring to and what they are working on. If they pull it off and the business flows to them, this stock has got to trade well in the Fall. I am hanging in there and like the potential.