How can I say this? Easy. I do my own research, using my own sources.
Why are you even listening to analysts?!?! Especially with IOMG, they have been inaccurate as many times as IOMG has reported in the last two years. I can't believe that there are a lot of people that give them any credibility! Analysts are no panacea and I advise you and anybody else not to waste time with them. In short I don't give a damn about the above mentioned firms, period.
JPM has a target on IOMG at 42, right? They lowered expectations artificially in order for IOMG to jump over easy and go higher, so they don't look stupid come Dec. 31. Don't you get it?
IOMG has cut their orders to SFLX .... oh, my GOD! Has the thought of reducing inventory and cleaning the ballance sheet a bit crossed your mind? It crossed mine. See, some people havee been complaining about too much inventory on IOMG's sheets. Therefore, the company has reacted, using the "European slowdown" as an excuse. What happened when Dell reduced their orders to INTC a while ago? Nothing. They cleaned their inventory and kept selling tose computers. That's it, plain and simple.
Sales might be flat or a little higher with OEMs and the US picking up the slack. Net margin, I think, should be the same or higher, based on more automation, less overtime, lower actual tax rate, etc. - contrary to what JPM has said.
Let's talk technicals and market psychology now. IOMG has bottomed out with three very important formations. Also, it broke out to the upside and held its gains. The "bad news" from the second and third quarter is discounted. The positive surprices and blowouts of the third and fourth quarter are ahead of us and the stock is getting into position. By mid October IOMG will be in the mid 20's and one would have missed at least 30%. Also, buying on the news will require paying another 10 - 15% premium. The wisest thing to do is to take position now or add before it is too late. I stand by my words and don't blame me later, when IOMG runs away!
Regards,
WV, Long on IOMG |
