Agoracom

This is from a discussion I am having on the stockhouse bullboards with another poster Oilsandy:

I fully agree with everything you wrote. I also bought some shares at a relatively high values vs. now, but was also able to average down a bit. Personally, over the last 6 months or so, I was looking at anything under half-billion in market cap as a good trade, and possible buy-out candidate.

I bought a large chunk a while back at $3.65, but was able to bring my average down to about $2.50. I have slowly been getting rid of these too on run-ups, and just got rid of the rest of my holdings at $1.65. I took a pretty big hit, but I have better uses for the money IMHO--but am going to keep some dry powder to watch the trading of SVC, and maybe buy back in.

I still think this is a great product, and that the potential for a buy-out is huge--DPI is only going to grow, especially in less liberal countries. My main concern lack of investor interest(we have been almost cursed since Andy Bell on BNN's 'Stars & Dogs' used us as his dog several weeks back), & lack of credibility with the street. I am also a bit worried about the 2 recent NR's that have come out, both really doing nothing to support the SP: 1. the mitsubishi client we heard about in the confrence call, 2. the 50 best place to work in Canada(sounds good, but I'll discuss my opinions below in the next para.). I am expecting to hear developments on client negotiations or sooner or later the inevitable lowering of guidance--I am not trying to bash, but if we don't snag some new clients soon I just do not see how we can hit the yearly guidance given.

This 50 best place to work in canada seems like a real vote of confidence, and that it could potentially help to lure in new talent. Most employees holding any type of real important position at SVC will have options, and be shareholders just as the rest of us. They would be just as pissed off with the deterioration of the SP as anyone else--not too great for employye morale. Sure some employees may have options from under $1 (I have not looked at SEDAR, or the F/S's to see the real #'s, just theoretically), but very few, and it is possibly just the founders, most of whom cashed in some amounts when SVC was at higher values. SVC employee base has really grown in the last year or so, so most options would have been granted at must higher values, and are likely greatly out of the money. For any employee who takes options in leiu of extra wages, this is a major concern--thier perk has turned into nothing. Many probably believed the lofty expectations, and did not take the opprotunity to cash in at higher prices, and are now feeling fleeced, as are the rest of shareholders.

Anyways, I really do hope things turn around for this company, as I am an Ontarian and love to see local industry flourish, but I have a feeling that until there is a large shake-up in MNGT that the risk reward with this stock is too high for me.

Best of luck to all,
bulls / kingjim(stockhouse id)