A. Wayne, considering the improved business conditions, backlog, and orders, the estimates for SVGI are only .02 cents better than last quarter according to SI. I suspect the the analysts that follow this company have not revised their estimates.
As of late, in spite of the Naz sell off SVGI has not sold off in proportion. Considering the sell off in KLIC, AMAT, LRCX, EGLS in the last few days SVGI has done very well. Yesterday, while others were down significantly, SVGI traded up most of the day.
The October 20 call options can be had for 9 1/2 and if this stock does not hit 30 by that time it never will. When the value stocks sold off they remained at their lows for about six weeks and I would expect the same time frame for the techs.
There are two chances for SVGI to rally near term. One is the release of the BTB next week, and the second is end of the month trading and the first four trading days of the month. Pre holiday trading is almost always a positive.
Perhaps this is all wishful thinking, but I feel that at some point in time investors will refocus on companies with strong earnings and growth potential.
Regards, Jerome |
