Our numbers are based on proprietary quantitative models that we have built to map macro market spaces for financial intruments.
They provide insight into the mathematically probably range within which a tradable instrument will move in the foreseeable future and automatically adjust with time.
They are best applied to instruments at the top or bottom of their overall market space as this is a state in which large fund managers and investment banks start looking to make what they call "model purchases" - i.e their math models tell them that risk:reward at these levels is either extremely attractive (model base) or extremely risky (model top).
To target these more closely we then run near term cycle and probability models to increase the accuracy of our entries or exits from the market.
Corporate governance is not a concern for us as we are attributing a purely mathematical approach to data analysis and full expect that smart money has always positioned itself for known knowns and often known unknowns based on inside knowledge. Might not be legal but doesn't mean it's not happening :)
We don't approach company boards unless there is a significant and glaring anomaly in a company's positioning within its marketspace compared with its peers / sector equivalents.
Boards are rarely forthcoming in our experience with anything that is likely a negative point as they are all remunerated with stock options. Call us sceptics but it seems to be the way the world works in many respects.
I will be allocating into the stock against the risk levels listed in the analysis I posted once price enters the zone that I highlighted as the point at which I would commence allocating.
Feel free to ask any further questions however it sounds like you have been taking a more fundamental approach to your analysis of the stock. We tend to apply quant methods to small caps in particular as potentially market moving news is more easily acted upon by shareholders and tends to show up in price action more clearly in many scenarios.
Again, for the purposes of not writing a 10,000 word reply I have made a few generalisations in my points above and some folks may feel these to be important ommissions however they are things we are willing to discount due to our market approach.
Have a great week.
MEM Price at posting:
6.0¢ Sentiment: LT Buy Disclosure: Not Held
