jfrancis, I'm happy to give you my thoughts but
please know that I am just as ignorant as most
individual investors on NABI and other stocks. I
have been following NABI for well over a year and
others like Tom D. on this thread have been
following it much longer. I believe NABI is
undervalued at current levels and should trade back
up in the teens later this year. I expect NABI
will soon release their data results on the new
HBIG formulation change and announce it is filing
for FDA approval. This should move the stock
positively although I do not expect a big move on
that announcement since it is anticipated. The
analyst meeting a couple of weeks ago should also
eventually generate positive movement. Why has
NABI moved down. I believe NABI is moving in the
direction of the general market which has been
trending downward in anticipation of the Fed's
interest rate hike tomorrow. Notice that NABI was
down to 8 5/8 today when the market was flat but
when the DOW was up sharply, NABI moved up to 9
1/8. I have seen NABI have very good support in
the 8-9 range and doubt that support will cease
unless there is a market crash. Buying or selling
at these levels depends on how much you own and
what you have available. IMHO, NABI is a terrific
buy at these levels. Recently, I have been
actively trading 1000-2000 shares of NABI between 8
7/8 and 10 1/2. I bought Thursday at 8 7/8 and put
in an order to buy more today at 8 1/2, which did
not execute. After the close today, I placed an
order to sell 2000 tomorrow at 9 5/8 which I hope
to buy back at 8 7/8 or a bit lower the next day.
My buy back price depends on how well the stock
seems to be holding up. Lately, NABI is having
trouble at around 9 3/4 to 10 1/2 and that is why
I'm trying to sell a portion in that range.
Eventually, I expect NABI will break out to 12 and
I'm holding other shares for that move. If you
think about it, the stock reached 14 3/4 last year
at a time that its earnings and news were worse
than now. Assuming they meet the analysts earnings
expectations, this stock should be in high teens to
20.
Your second question involved DGII which I am
totally unfamiliar with. I did very minimal
research and saw it is a networking company that
posted sequentially lower earnings the past quarter
and negative income. It has fallen sharply due to
its own earnings shortfall and the networking
sector selloff. If you own it, it does not seem
wise to sell it at current prices but I also would
not be buying it simply because there are many
other well established networking companies that
have fallen sharply and I feel more comfortable
with their future earnings outlook (e.g. BAY,
COMS/USRX, CSCO and FORE), The problem is that the
networking sector continues to be under pressure
and I expect share prices will keep falling. I
have a predicament with BAY insofar as I refuse to
sell at current prices and take a big loss but I'm
also not buying. I sold my COMS/USRX position at a
small gain last week because I think lower prices
will be available. My current target prices for
entry positions are: USRX at 45, CSCO at 40, FORE
at 15. I do not think the sector will change
course until there is at least one more big move
downward near my target prices. Hopefully, NABI
will be at 12-15 then. |
