ebook essays pieces of the puzzle
Tuesday, February 14th, 2012
silly season

Above please find the results since 2004 for BroadVision (BVSN).  You can see that there has been a steady decline in sales and no net income to speak of for a long time.  Now contrast that with the market cap graph.

Hope springs eternal and speculators gravitate to some stocks despite past disappointments and the apparent fundamentals, especially in a silly season like that which we are in right now.

Perhaps there’s some miraculous rebound on the horizon for BVSN’s business and things will change this time around.  But in response to an explosion in volume and significant price moves, the company said it “is not aware of any corporate developments that it believes would explain this unusual activity.”

There was a 13D filed by Marlin Capital Investments on October 4, which disclosed that it held 5.5% of the shares and wanted to acquire the company.  But that didn’t move the shares much; they waited for the turn of the calendar before skyrocketing.

Silliness can be contagious, as a longer look at BVSN would show.  For it to match its 2000 peak, the stock would have to trade at a price of $20,400 a share, a bit of a jump from the $36.56 it closed at yesterday.  (Chart:  Bloomberg terminal.)