The industry will do well and these companies should do much better. But we would wait for significant corrections to do new buying. SoftNet is an example of this market s excesses and opportunities. Common sense and our standing advice dictate taking some profits on any move that far and that fast, regardless of what you think of the stock. The inevitable correction was even more vicious than we might have expected, taking the stock below 20 before a recent bounce.
Financial results show that the company is on track, though it s still early days.
The company has just begun to add customers in significant numbers to its broadband Internet access and content systems. The loss increased due to capital outlays. Fortunately, SoftNet has plenty of resources to work with due to the earlier financing and its joint venture deals. This is another opportunity to accumulate. Intermedia s sharp drop also presents a buying opportunity.