Pri Automation Closed at $35.25 today.
It has not been one month yet, and share price has already risen 64% from where it was on April 21.
Of all the automation companies, this one has definitely caught the institutional eye (see blurb in Wall St. Journal).
From Infrastructure report of H&Q conference, (just a few facts if I may) Pri reported that revenues grew over last 4 years at a 70% compound annual rate, backlog at end of March is at $86.5 million, and company has 90% market share in U.S.
From the chart, there appears there will be overhead resistance at the 38 - 39 level, though volume on the buy side continues to be extremely bullish, so resistance should be fairly easily broken after some consolidation. In my opinion, this thing should hit $50/share by year-end, which would translate into a further 40% gain from here out. Industry growth rate, (and you already saw the company growth rate), and higher earnings will support higher share price and PE. This company is sitting right at the proverbial "sweet spot" of the industry. And the incredible confluence of factors: the rotation into small caps has turned into a stampede and has further to go, the normal election year stock cycle historically favoring upside, a steady interest rate at least until the end of the year, baby boom demographics favoring saving and investing, and corporate PC year-end buying giving emphasis to institutional return to tech sector, should translate into gains that will resemble the first half of last year. These are my thoughts. Unless you really need the money, I wouldn't be taking any profits here. The swing from overbought, to trashed out oversold, back to overbought has just begun....Sorry for being so long winded. Now that I've said my piece, I'll go away for another month.
See ya then! |
