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AeroMechanical > Message
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Re: Anyone's Call

Posted by: hedzupp on April 29, 2008 05:43PM

In response to: Re: Anyone's Call by Hotshot

I'm sure there are a lot of higher priced buyers who are asking that same question, and hoping for a rebound of some sort. The pressing question is what will be the catalyst that will bring interest back to the stock.

Yesterdays Star patent litigation announcement didn't help, having a patent dispute whether it's legit or not, will generally serve to keep a lot of folks on the sidelines. And what does it do for potential sales or the potential 'install' contracts with the unnamed Chinese operators. Even if the Chinese approvals are forthcoming, will they risk installing a piece of hardware that is subject of a dispute. To my knowledge the Company ( AMA ) has not responded to Star's press release, presumably they're formulating a legally reassuring response and not just hoping that no one will notice. This debate is going to hang over them like a dark cloud until it is brought to a decisive and irrevocable conclusion.

If one is a technical trader, the stock's price trend has definitely broken down, it is well below the 200 day moving average and continues to trend lower. Since we're all guessing, I'd venture that barring some gi-normous piece of news or a very quick resolution of the patent woes, that the stock has every possibility of slowly retreating to the 50 cent range over the next 3 or 4 months. I'm not eager to see that happen, but I just can't put my finger on a reason that will prevent it. Having the current shareholders hold tight is admirable and would certainly mitigate the decline, but we need buyers to force it back up.

Time will reveal all, but it's sure not a robust period for most junior stocks, and AMA is also unfortunately caught up in that general malaise.

Cheers

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