The fundamentals are basically exactly what I forecast, except...

The fundamentals are basically exactly what I forecast, except with an additional USD$3M from the DOD which I did not expect to generate revenue in calendar year 2015. So I basically forecast it at a bit more than USD$7M for calendar year 2015 and if I take that indicated USD$3M from the announcement and add it to my forecasts ... boom, I get "more than USD$10M" as indicated in the announcement.

The fundamentals are definitely not weaker. They're stronger or at least equal to what i was predicting. I've not had time to update my model yet but I've done 2 back-of-the-envelope DCFs in these forums predicting an intrinsic value of a bit over $1 (balanced) to a bit over $2 (bullish).

I don't know how many FA investors are here since personally I would not normally touch small caps like the ones on this forum (AJX is my first small cap under $0.9 ps), but a basic FA test would be this:

1. Has any negative news been released?
2. Has the capability of the company to generate revenue been impaired for a significant period due to negative news? (i.e. failed products, management failures, project failures, failed expansions, etc.)

The answer to both questions is no.

Therefore, from an FA perspective, any price action happening right now is just noise to be ignored. The 3 year time-frame of a value-investor is designed to help ignore fluctuations like this so you don't get shaken out of your holdings.

If HC is a sample of the retail market, then you can clearly see that fear has taken over. I think this is even worse because everyone was talking so highly of the stock so the sudden quiet and downwards price movement has really spooked people. I for one have been quiet because I'm being patient - as any FA investor would be. My silence is not indicative of a flight from the stock or lessened confidence. I think many of the others are the same.

And again, if HC is a sampel of the retail market and the instos were trying to shake out retail investors to accumulate a more sizable portion for a cheaper price ... well you can see by the atmosphere here that it's clearly working. Keep in mind people here are more likely to be highly informed about the company. Imagine what other retail investors are feeling right now? Probably have all sold out.

"Be greedy when others are fearful" - Warren Buffett.