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Strategies & Market Trends : Stock Watcher's Thread / Pix of the Week (POW) -- Ignore unavailable to you. Want to Upgrade?

To: RCJIII who wrote (3900)	3/9/1999 9:24:00 AM
From: Bert Zed	Read Replies (1) \| Respond to of 52051

From now till the end of March, daytrading INSGY is risky. The potential for this stock is much higher than many of us currently realize. Here are some key reasons: 1. Wall Street analysts' recognition of INSGY is currently limited. The upcoming Embedded Systems conference (March 2 to 4)could change that, particularly if JEODE is one of the key star attractions at the conference. 2. The beta-testing of JEODE is scheduled to end on March 15. After that date, announcements of adoptions by key embedded systems vendors may be forthcoming from INSGY. Any one of those announcements will allow the stock to base much higher than current levels. 3. The key factor to watch out for is whether JEODE adoptions are limited to embedded systems vendors in the computer industry or whether they extend to consumer products like cell phones, etc. If such an extension occurs, the momentum created by the increased awareness and publicity could carry the stock well into the $40 range. Remember, the issue is supply versus demand. Given the limited float, high institutional demand for a product with over 80 percent of the global market (if that occurs) could trigger a buying panic. 4. If the conservative $0.85 per share projection by INSGY's CFO for FY 2000 is realized, the perceived growth rate of EPS will be over 850% compared to the 1999 projected EPS. Even if that rate of EPS growth is perceived to be unsustainable, the dominant market share would suggest a P/E ratio of 40 or so. That alone would support a $34 stock price by FY 2000. 5. Although INSGY would be a one-product company (as someone on the SI thread has pointed out), the inflow of cash from JEODE's success will open up growth opportunities that the current stock price (around $5 as of now) does not consider. This situation is not unlike MSFT when it had DOS as its only product. Acquisition of an RTOS company (to create a seamless RTOS/JEODE product for the embedded systems market), or of a JAVA hardware-manufacturer then become viable paths for expansion. Good luck to all INSGY longs. The ride from now till the end of March is going to be a very interesting one. It will also be extremely profitable for those who retain a longer-term perspective. The stock will bounce around a lot as day-traders try to time when to get in and out. But, as noted above, the month of March is probably going to be filled with announcements from INSGY of JEODE adoptions. Once you get off an accelerating train, the problem is how to get back on the train again, without risk of bodily injury. Safer to stay aboard the train for the duration. IMHO -- Investor_Spec