Beta relates to volatility. We have enough of that even with some celebrity stocks nowadays. Why bother with Beta in small-capital stocks?
It is a matter of domain expertise. Stock price trends are affected by people who understand the business concerned, and also by others who are entirely dependent on the authoritative opinions of others. The latter can be biased or motivated. New technologies are especially vulnerable to misleading forecasts from all quarters.
This small-capital member of the Computer Hardware Industry from Acton, MA has stuck its collective neck out on television on-demand. The cable television era has been responsible for the stock having gone down to as little as $4.95 during the past 52 weeks.
Things are beginning to change. Choice on television is now so broad that every individual has more than one show they must see at the same time. The Internet is one option to enjoy programs after they are first broadcasted, but some families still enjoy wide screens, high definition, and group viewing. This company offers equipment and software that allows you to watch television programs on demand. It is more affordable, easier to operate and highly reliable, compared to anything available in the past.
That is why the Beta of the past for this stock now looks set to transform smoothly into flight above stock exchange turbulence. The stock price has reached $7.92 by the start of the third trading week of June 2008. Top cable and television programs are lining up outside this company’s doors. You should take a look at this stock, because most of it is already held by knowledgeable institutions.
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