cold water

Now that day traders have suddenly discovered ambri, my sense is that the SP is due for a correction. The 45% rise we have seen over the last two weeks can be explained by the market factoring the CVT (commercially viable technology) milestone into the SP. Now that CVT is factored into the SP (based on yesterday's close ABI has a market cap of more $100m), it is difficult to see what could drive the SP substantially further in the short term. Keep in mind that CVT does not mean that ABI have cleared all of their technical hurdles. They still have the enormous task of figuring out how to mass produce the cartridges for the US market. Significant technical and capital risks remain. Also keep in mind the company does not expect to enter the US market until late 2006. On the best case scenario this company wont generate significant revenue until 2007. (I hold ABI, but took some profits yesterday).