Vol, you'll see/have seen my thoughts on UGLY in the UGLY thread. I had to sell out my INVN shares to prevent a margin call, taking a small loss. (Nut of $11.04, sold for $10.50) At the time, it was the smallest loss I could have incurred. Also, I haven't been entirely comfortable with INVN anyway.
Up until a few weeks ago, VectorVest was valuing INVN at $14.50 or so. With a nut of $11.04, that wasn't looking like a whole lot of growth potential. Their future revenues right now are based on an order backlog which should take about a year to fill, and bring in $47 million. That's sizable, but backlogged orders can be canceled. There's also no real guarantee that they'll have the capacity to handle the backlog as well as additional orders, which may prevent them from getting additional orders, which may go to competitors who have similar equipment and excess capacity.
On the other hand, INVN has had high growth, record-setting earnings, and is valued at over $17 now by VectorVest. So it may be a good bargin, once it stops falling. TA is definitely giving an oversold indication.
But like I said in the UGLY thread, I'm no analyst.
Doug. |
