Quote from SethArb:
why bother with TMTA ?
is it the gambling mentality in the sense of
that "TMTA" was once a highflyer or that one can
buy more shares than if it was a $20 stock
and pray for a return of say 5 X on money speculated here ?
was TMTA chosen for fundamental reasons ?
or based on a stock screener of penny stocks ?
TMTA is a turnaround story, in brief they used to be a dotcom bubble stock, with the company focusing on designing/manufacturing low power processors to compete with Intel (and later AMD). That didn't really get them very far, since competing with Intel is an extremely difficult proposition, but it did provide them with a portfolio of IP relating to low power tech.
The reason for the turnaround is that the company is now focusing on licensing their low-power tech to other companies, essentially a higher margin business model that is quite similar to that of RMBS. Companies licensing their tech thus far include NEC and Fujitsu, the company is also currently doing work for Sony and some sort of secret project for MSFT (if you look at the last quarterly report, the MSFT item has most of the details obscured for confidentiality reasons).
So, as I mentioned previously, I picked this stock for a trade for technical reasons (had also done so in early August), it has been on my watchlist for a little over a year. Also, as I mentioned, part of me taking a long position is fundamentally motivated, I would suggest taking a look through their last quarterly report to go over the numbers and get a sense of their business.
This would currently be a high-risk entry point though going into earnings.
