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SupportSoft: Real-Time Tech Support for your Portfolio
Guest blogger: Larry Schutts, vice president of Stockwinners.com and a contributing editor for Theflyonthewall.com. Larry looks for stocks with technical and fundamental characteristics indicating gains in the next 30 days. However, price movements may be volatile. He includes a stop-loss price in each post. Consider selling a position should the stop-loss be violated.Computers are a boon to all mankind, but a bane to our peace of mind. Ever wish you could get help fixing computer and networking problems right across the Internet.....in real time? Well, there is an outfit in Redwood City, California that's got you covered.
SupportSoft (NASDAQ:SPRT) provides real-time service management software that resolves technical problems associated with services and products delivered across broadband and corporate computing networks. Clients use the programs to enhance in-house technical support and to smooth communications with customers across intranets, extranets, and the internet. Clients include digital service providers, corporate enterprises and managed service providers in North America, Europe and Asia.
The company had good news for investors two weeks ago, when it said it expected fourth quarter revenues of $14 million.
That exceeded prior guidance of $12-$13 million and topped the average
Street view of $12.53 million. Shares popped through 30-day and 50-day
moving average resistance on the news and are now consolidating the
gain in a bullish "pennant" pattern. Equities frequently exit pennants
moving in the same direction they were traveling when they entered
them. In this case, that would be to the upside.
Brokers recommend the stock with one "strong buy," two "buys" and one "hold." Analysts see a 31% growth rate, through the next year. The SPRT Price to Book ratio (2.23) compares favorably with industry, sector and S&P 500 averages. Institutional investors hold about 59% of the outstanding shares. Over the past 52 weeks, SPRT has traded between $3.31 and $6.86. A stop-loss of $5.75 looks good here. Note that the firm expects to report fourth quarter results on February 8, after the close.
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Last year I bought 1000 shares of Delta airlines when in bankrupsey.My question is, What happens to my investment if they are purchased or come out of bankrupsey. I would appreciate a reply.thank you.e11033ce@aol.com
1/30/07 12:55 AM
"Although a company may emerge from bankruptcy as a viable entity, generally, the creditors and the bondholders become the new owners of the shares. In most instances, the company's plan of reorganization will cancel the existing equity shares. This happens in bankruptcy cases because secured and unsecured creditors are paid from the company's assets before common stockholders. And in situations where shareholders do participate in the plan, their shares are usually subject to substantial dilution."
Regarding a potential purchase of the firm, it's probably best to remember that there are hurdles to such action. Think of US Airways' improved offer. The last time an airline merger of this size was proposed was when United wanted to buy US Airways, back in 2001. The Justice Department blocked the move on antitrust grounds. To be sure, Justice would probably be more receptive to the notion now, since industry competition has increased. Still, that's one hurdle. Then, of course, there is opposition from Delta's management. An unofficial committee of unsecured creditors is urging the official creditors committee to consider the improved US Airways proposal, but opposition by Delta management still counts. Finally, any merger would need an OK from the bankruptcy court overseeing Delta's operations. Hurdle three. Let's see where shareholders stand, after some of these hurdles are negotiated.
Larry Schutts