Malsi, My opinion on iwrk is the following:
I'd rated it a moderate buy if you have a long term horizon, I do think it will go up over the next year, but I also think there are better investment alternatives.
Iwerks is 4 stories - a company expanding too fast with expenses out of control (3 yrs ago to 1 1/2 yrs ago), a company with expenses under control but with only modest growth (1 1/2 yrs ago to 1/2 yr ago), and a company with expenses under control but no growth (1/2 yr ago until now), and a company trying to grow but limit risk (the future).
In order to move higher they must show growth. They recently announced 3D versions of movies can be shown in existing iwrk theaters. They are also partnering with several parties to own and operate theaters rather than just selling equipment and software/movies. Also I've seen insider buying (i believe about 10k shares) for the first time in a year - this was a sign that I waited for.
Re. my shares - it was my largest investment for the first 2/3 of this year- I rode it up from about 7, sold some in the 11, 10, 9 and 8 range, bought some more at 6, lightened up at 5 but still own a few thousand shares. I believe the worst is over and it is turning around again. Also a mutual fund increased its holdings by several hundred thousand shares to a million shares (Heartland fund or something similar).
So I would rate it a moderate buy. I'm more bullish on aldila a maker of golf club shafts that is turning around and data race a maker of telecommuting products. I believe the risk profiles of iwrk and alda are relatively low, data race is far riskier although potentially more rewarding.
These are my opinions and not investment recommendations. Advise that you research them and decide for yourself.
Best wishes for Happy Holidays,
Gary |
