Eqnx - a serious "value play"? Here's why (I believe)...
-Trading at low PE of 10.
-Trading close to 52 week low of $6.75 (presently $8.375), 52 week high was $18.
-Has been inching up in anticipation of earnings over past two weeks.
-Was hammered down last Q due to a small shortfall because a major order from one OEM slipped from Q2 to Q3.
-$14M in cash, no debt.
-Heavy Institution ownership and insider ownership.
-CEO still holds most of his stock - has sold very little into the market even though stock price has climbed.
-Dgii (Digi International) is closest competitor and is trading at a PE of 16 - Eqnx is was ahead of them in management, focus, product and technology.
-A great Q3 is expected, with rumors of another major OEM deal already signed.
-No exposure to Asia, very little to L.A. or Europe
-New products being released which puts them into a new market altogether with much higher average PEs (Remote Access, NT Networking, Terminal Servers, etc - ASND, LU, XYLN, etc)
-Ripe for possible takeover, or logically may expand through acquistions
Is this what this group might call a value play?
|
