What would make you squeal?
So you say you have a Whole Hog position in ON2 Technologies? Brilliant! I say.
So what exactly would make you change your mind on that? What would make you turn tail and run with what’s left of your hard earned cash?
Yeah, what exactly would make you squeal?
How about if your Whole Hog genius position had a chart that looks like this?
Holy Hot links! Talk about a free fall. Was that a squeal of surrender I heard? No???
You don’t give up yet?
How about some fundamental analysis from the renowned MSN Money Computer Swami:
Damn, ON2 rates a whole 1 (and they don’t use zero). The worst of Hollywood’s movie crap never rates that low.
But you know better, right Einstien? And you’re still still holding onto this pig in desperation?
OK, so let’s throw some scholastics from the Computer Swami at you. How about this?
ON2 is the High School Drop Out of the Amex based on those scores.
High Risk + Low Return = Say what? ONT is a Fundamental Flunky here so far.
You’re ready to click the SELL AT MARKET button now right? No??
OK so what about the short interest? Surely you’ll take the advice of those HedgeHog pros.
Everyone knows that they are the real professionals right?
- ONT short interest in January 1,694,107
- ONT short interest in November 16,192,091
It’s now TEN TIMES HIGHER!!
You have to sell now, the entire universe is telling you that you’re wrong!
Give it up already subliminal sissy, not only am I not selling - I’m smashing my piggy bank for pennies to buy more.
A few issues that would concern me are:
Capitalization - I made a mistake on an undercapitalized Hog that was bought out way too cheap because they were backed into a corner. ON2 is well covered on this issue. They are running cash flow positive already and have quite the piggy bank to tide them through till device royalties kick in.
Debt - A company with a lot of debt is a serious concern for me. ON2 has none.
Competition - This is always a huge concern with a technology company, and this is the issue I spent the most time reading up on. I still believe that ON2 provides the best all around product on the market, and it has several huge advantages over the main competitors, which are standards based. This is a risk, but so far I have only seen ON2’s competitive advantage increase on this issue.
So what would make me squeal?
If my sole reason for buying ONT changed. As long as I see a very high probability of increased revenues for ON2 Technologies, I will stay in the pig pen.
The price drop doesn’t worry me at all, it just gives me an odd craving for bacon.