My Thoughts,
It sounds appealing to claim an exit strategy on the stocks recent high. For most investors, it serves as a reminder that the stock market is indeed unpredictable. While Friday's trades may look prescient today, they might not appear so insightful if Irvine popped out with a surprise announcement such as a strategic partnership.
Sound implausible? Two members of Irvine Sensors senior leadership team just completed a trip to Europe. What were they doing there? Based upon comments at the recent shareholders meeting, they were going to Germany to discuss the status of the Microsensor,Inc (MSI) subsidiary and in particular their enthusiasm with the potential of the Micro Silicon Ring Gyro.
Is this important? These kinds of activities are significant and often can produce unpredictable actions. For example, a surprise announcement which partners either Irvine Sensors or its MSI subsidiary with either a European car maker or a competing American manufacturer would transform the nature of one's investment in IRSN overnight. Predicting when this happens is difficult and the CHARTS won't tell you. Under this scenario, profits made on the basis of a tactical trade may not look so appealing and 20/20 hindsight would wish a revised history.
So as to be clear, I'm not trading my Irvine Sensors stock. Perhaps it will be painful decision. I hope not. My horizon is long term and I believe there is a marked difference in this company between this year and last year.
Five new executives with commercial backgrounds and commercial success lead Irvine Sensors. They have refocused the company and redefined the markets which Irvine Sensors serves. They are proliferating products lines. More importantly, they have key technologies which are converging with a strategic purpose.
Perhaps I am wrong, but I see great value here. It is my "agenda" to offer my interpretation of this investment for the benefit of other investors on the SI thread. I appreciate and enjoy the many and varied opinions found on the SI thread and I learn from them. I hope some will benefit from my observations.
Let me again be clear. I am not a trader. This is a long term core holding because I believe Irvine Sensors will enjoy significant growth over the long term. My horizon extends beyond next week, beyond next year, and well into the new millenium. I have visited the company twice and toured their facilities. While I am not a technologist, I am a practical user of advanced technology and I am surrounded by an organization which uses and produces some of the world's most advanced technologies.
I can't predict the future of IRSN. However, there is no question that they have developmental products which define significant opportunities. It is no secret that fortune 50 companies are discussing that technology. That alone is a significant departure from the past.
The market is at best imprecise, irrational, forward thinking, etc, etc. As sure as you can diddle the company for not having earnings, I could cite companies with with no earnings and unfounded valuations. I could find companies with extensive earnings, low PEs, and depressed stock prices.
I believe it is likely that IRSN will find a strategic partner for one of their developmental products within the course of the next several months. I think it will change the character of this investment overnight. This will not be predictable nor will it be dependent on current earnings. It will be based on future markets and future earnings potential. Wise investors who accumulate Irvine Sensors will be rewarded.
Just an opinion.
Migdriver |
