I'm in a pretty stress free situation, having entered at $0.96 for a position trade. Didn't expect it to work out so well so soon. I'm really wondering where are things going to go from here though. Basically this a company moving from being more or less valued as a bankruptcy candidate to suddenly being profitable and cashflow positive, I think it's going to take a fair bit of time for the market to figure out how to value the company. In the meantime, I'm set for a wild ride, should be a very interesting learning experience.
Well, I'm honestly fairly stunned, TMTA is up another 20% as I write this, on another very high volume day. Chart is pretty much going vertical, but I have yet to see a sell signal (aside from looking pretty overbought), just keeps moving up, consolidating, ramping up some more, etc.
I was out 30% of my position at 1.50 and sold another 15% today at 2.15. I have no idea where this is heading as i agree that there are no sell signals yet; however, now that i'm down to just over 1/2 a position i'll be much more picky about my exit points here on out. From a valuation standpoint i think that assigning a 400M market cap may be overdoing it until we see how they do next quarter and FY 05.
you have got to be kidding ? each engineer is being paid $500K + a year ? or is this some sort of rush job that ends in a month or so ? -160 engineers working fulltime for CONTRACTS with Sony and Microsoft. They earn between $275 and $300/hour-
Damn, I regret not coming across this thread earlier. TMTA reminds me of BIDU. There ought a be a thread were we can post all the hot stocks moving for the day. Picking the right stock to trade makes trading soo much easier.
TMTA is paid that. The engineers get about half that in salary in benefits. It's all in the conference call. That rate is not unheard of for the highly skilled work they do. I also think the contracts can keep coming and won't end in a month, but I can't say that for certain. I'm still long. I still think the stock is worth $3/share today. The company may be worth more then $3/share to a Sony, Microsoft or Intel.
I sold my entire position fairly close to the level you did (I exited at $2.11). Keep in mind that I have an extremely small trading account (I'm a uni student), so scaling doesn't make sense. Overall gain = 120% (my first double). My justification for doing so was that volume was really, really spiking today, I suspected that this might be indicative of a short-term peak (I think TA calls this "exhaustion"?). Also, the stock has been making huge moves for a few days in a row, I'm expecting a round of profit taking. Going to monitor closely to look for a possible re-entry point, but I also have my eye on some other potential position trades, so it seemed best to book my profits at this point.
Sold on the last runup in the morning had a stop at 1.95 and got filled. So i'm pretty happy with my exit points. Still have some shares left that i'm planning on keeping a year for s&g. But i'm out 95% of my position. FV on this is around 1-1.20. I'll be a buyer if it ever sees those levels.
FV = Fundamental value? If so, I'm sorry, but TMTA is likely worth far more at this point than $1.00/share. TMTA posted a $0.04/shr profit for Q2. If this were to continue without any further revenue growth, forward looking P/E would be ~10.7 based on todays close at $1.71. Trailing 12 month EPS is of course zero, so it would arguably take another quarter or two (at least) of results in order to start to prove to investors that the turnaround is real, however, things are looking quite good. At some point investors have to start valuing the company based on future cashflows/net income instead of essentially being viewed as a bankruptcy candidate. That said, the recent runup in the stock was clearly overheated (causing me to take profits on my position), need to see the stock consolidate the current gains before I would consider re-entry. Good news is that TMTA probably won't have to worry about de-listing, as stock has now completed 8 of 10 days above $1.00 required to maintain listing requirement.