" The market doesn't seem to impressed."
Ah, "the market," by which I assume you mean the collected beehive of human beings and other life forms who trade day to day or hour by hour. They are fickle bunch, one day valuing a stock at X and the next at Y and the day after that at Yx2 or X-4. I don't pay much attention to them.
In looking at a company like VISG, I try to look past all the buzzing bees to see if there is any honey in this tree and what I see is strong management, dominant IP, reasonably high barriers to competition, broadly diversified use of IP, profitable operations B-4-WTC, Y-on-Y growth w/o finagling the numbers, an expanding customer base, and an industry that is likely to remain vibrant and growing for some years ahead. I don't like VISG's trailing P/E (and I am not thrilled at potential invasive misuses of FR) but I'm not so sure the forward P/E is all that out of line. As of June '01, VISG listed 55 employees. As of September 30, 100. As of October 12, they announced they were adding another 50. There are other shadows on the wall suggesting profit growth, as the CEO himself said recently, will be "exponential."
I have no doubt the busy bees will drive VISG down and up and down and up in the short run. Some will want to clip it for pennies here and there, and they're welcome to it. I'd rather play this one for the long haul. |
