And now I've looked at the fundamentals for AMBT. Very small company, but, even last year, 10 million dollars in revenues. That's, in Street lingo, very small, but that kind of number always impresses the heck out of me. Revenues are down steeply the last two years, though they were up steeply the two years before that, and, during those two years, the company was distinctly profitable. In the news, last month they launched a new product. Maybe the last two years have been kind of a reset period, after a reasonably successful experiment in the market, represented by the two years before. That's legit startup type activity. With that said, the balance sheet is quite scary. They've got a million dollars in cash, which, in itself, again, makes my eyes go wide, but that's down from considerably more cash that they had a couple of years ago ... and they've got debts and obligations.
No, this is no safe and long term investment. It's more like pulling the slot machine lever ... guaranteed fun! What I'm saying is, "Market, I'm willing to pull this lever, for a possible return of twice or three times my money, but give me a break on the price. Let me pull this lever for .77 cents a share. I'm going to put an order in the market at that price, and you think it over."
Yup, I'm more and more convinced AMBT isn't a great idea, here. That doesn't matter. What's important is the decision making process. I believe I have a much better investment to offer you readers, a chart I found the other day, which I'll dig up. Stay posted.
For the full story of this AMBT trade, complete with philosophy, work your way forward from this post.
No comments:
Post a Comment