Welcome to the board, dominoe.
I am long-term bullish on InvenSense and view developments in MEMS as a new technological wave "on which" I would like to ride for the next decade or more.
There have been so many rumors in regard to having Apple as a new customer that it's easy to get caught up in the buzz. I saw several marketing pivots toward MEMS after Apple first introduced gyros along with the accelerometer in the iPhone when most marketing estimates suggested it would take 10 years to see a significant adoption of gyros. Apple changed the playing field overnight.
The short interest in this stock has plateaued to around 26 million shares around December of last year. This is something that I check on with the bi-monthly updates -- and this keeps me on my toes. On the other hand, it could make for a wicked short squeeze:
Investors Are Shorting InvenSense (INVN) Stock: Is A Short Cover Coming?
Many investors appear to be quite bearish on InvenSense Inc, especially if you look at the percentage of the float that is sold short for this stock. Currently, 28.48% of the float is sold short, suggesting an extreme level of bearishness for INVN.
While investors might be piling up against this stock for any number of reasons, it is important to note that INVN has seen some weakness as of late, as the security hasn’t been able to get into positive territory over the past four weeks, losing 0.97% in the time frame.
Better Trading Ahead?
While the short interest and the recent performance are certainly troubling, there is reason to be optimistic on this stock. Recent earnings estimate activity has actually been quite positive as of late, even in the face of such widespread pessimism.
Thanks to these rising estimates, we actually have a Zacks Rank #2(Buy) on INVN, so we clearly don’t believe in the negativity surrounding this firm. After all, it is hard not to be at least a little optimistic on the short term when you consider that 4 estimates have moved higher in the past 60 days compared to none lower in the same time frame, while the consensus has also increased.
Given this, a short-covering rally is certainly in the cards for INVN stock, especially if investors embrace the positive earnings estimate revision picture, suggesting that INVN could definitely move higher in the weeks ahead.
zacks.com |
