Anyone who buys a small company on a very high P/E ratio should...

Anyone who buys a small company on a very high P/E ratio should allow for the possibility that the market will re-rate them towards the sector performance if results are not extraordinary each and every results season.

I have watched NTC travel from a price lower than present, to $3, and back again.
I thought the risks involved in buying at $1.50 and above were too great for my stomach to digest.

On the other hand, the current share price (at a P/E of about 14) represents very good value for a small tech company that is doing the right thing, at least as far as I can judge it. So I purchased a few.

I think the current complaints about management are not the result of bad management, but the indigestion felt by those whose original investment strategy was more exuberant than rational.