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Jdog- Its more predictable than you'd think
Ganjasaurus- Its at a low point again and so its a good time to buy while its this low. The fact that at a time it was at 25 just proves where this stock can be when good things are happening to the company. It probably eventually will come back down to earth, but isnt that the basic concept of investment? Buy low Sell high ?
..for those that are wondering why specifically this stock will be going up at perhaps as fast as TASR did...here is why:
1) Look at their quarterly earnings. Progressively higher each and ever quarter. It has now posted two consecutive profittable quarters in a row which in the game of getting your company off the ground it is a huge step to show consecutive quarters with earnings. Mix this with a progression in their +/- and it looks like this one will not be looking back. 2002 they lost 625k , 2003 for the whole year they were 81k down...2004 will be their first whole YEAR in the black. This will also drive the stock up as confidence in the company goes up.
2) The government has announced they are setting aside somewhere in the range of 600-650 million dollars in grant money for projects that a company like CBTE would handle. They are using the money to contract comapanies and anounced that CBTE would be one of only EIGHT companies eligable for the grant money.
3) Every year CBTE has been contracted for more and more money. This past year i believe it was for 5.1 mil...this upcoming year they are projected to have somewhere around 8mil which should put them atleast 2 if not 3 million in profit this year. This will be huge and will drive the stock up.
4) If you look back at the press releases of CBTE, you will notice that they are just stock piling patents. Some of these will eventually turn into contracts.
Now take those points (probably not illustrated that well, sorry) ....and really sit back and think about it.
Usually when CBTE has a good anouncement it has been pushing the stock up about 15% and thats on low volume which is impressive that it can sustain it most of the time. So if we can keep getting those 15% climbs with positive anouncements then look at the potential of the upcoming year:
You've got in all likelyhood one contract announcemnt per month. If you're wondering where i came up with that number, just look at the past contract anouncements and now figure in that the government will be contracting them as well. You will see that one per month is very conservative.
Then you've got 4 postive quarterly earnings reports which should be positive.
Also keep in mind that this is not a pharmaceutical company. A pharmaceutical company is high risk because if their drug gets denied everyone hears about it. If CBTE misses out on a contract you will not hear about it, only if they get the contract will you hear about it.
so, you've got 16 jumps hopefully coming in the next year. So, the stock is at 3.80 now...here are the jumps:
4.37
5.02
5.79
6.64
7.64
8.78
10.10
11.62
13.36
15.37
17.68
20.33
23.38
26.89
30.92
35.56
There will be some set backs in well which is why i feel that like 20-25 is a good goal for the next 52 week period...be even if it only hit 20... if you buy in now, at 3.80 with 5k, in 12 months your 5k would turn into $26,315
I understand that there will be skeptics as there always will be. But keep an eye on this one guys, i think its really gonna blow up it.)
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