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Heeed,

I'd watch it for a few days before you average down. I thought about averaging down at $6.00 - glad I didn't. I e-mailed investor relations to ask if they had any more bad news they were about to spring on their owners, and I haven't heard back. Management is generally not very communicative - typically a sign that they are in over their heads. The whole thing sort of reminds me of Compaq - i.e., management biting off more than it can chew.

Hopefully the price will bottom out soon, and the process of cleaning things up will begin.

By the way, do you understand how exactly a buy-out price is related to the market price at any given moment? Given that a company will presumably have future earnings, is it conceivable that a buy-out price will be based more upon projections for the future rather than the immediate market price?

John
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