The problem is, this was seen as a growth stock, but had no growth. If they can't get revenue growth and earnings gains, the stock will have a hard time moving higher.
Because of security reasons, guidance coming out of the company is very limited and is frustrating to analysts. It takes time for them to put licensing into their encryption products, and that creates delays. Looking for a new CEO. Also want to go after companies using their technology and make them pay.
Ranks 487. Analysts shaved estimates by 20% in the last 90 days. Expected to earn $.21 for April/08 year-end giving it a high 25 P/E. They license their technology for consumer electronic devices as well as good encryption technology. Speculative.
The frustration for this company has always been how are they going to translate a very brilliant encryption algorithm into revenues and profits. Most of the revenue has been generated through toolkits. They may have missed their window.
Ranks in the bottom 15% of his database. Earnings estimates have been shaved by about 6% in the last 90 days. Forecasting a swing from a loss of $0.09 in April/06 to earnings of $0.02 in 07. Forecasts for 08 are earnings of $0.26. Signing up clients, but it takes nine months for revenues to come.
Ranks just below half of the database. Earnings estimates were down by 15% and the company just warned today of poor earnings expectations. Their product is useful for interenet security and can also help prevent video and music piracy. They are negotiating with very large companies on very large contracts for global applications.
Recently purchased a small bit. Ranks poorly in his models because it has and Apr/06 year end and is expected to lose a penny. Going out to Apr/07, it is expected to earn $0.13. A grossly speculative venture.
Have some interesting technology in encryption and are looking at licensing it. Had a negative earnings surprise when they reported their earnings. Earnings are expected to go from minus $0.13 to break even in '06. Ranks poorly in his model.
An encryption company. Have signed a US defense contactor where they get a royalty. No visibility as to where/when these deals are going to be consumated so difficult to know what to pay for it.
Expected to swing from a loss of $0.11 to a gain of $0.02. That makes a fairly high 230 PE. Have great patents on some very interesting technology. Believe they will end up signing some royalty agreements with a great variety of companies. Feels it is extremely expensive at this point.