This is getting up there in terms of valuation. It is heading towards 3.5X BV, which is everything that he could see for the company. FMV is about $12-$13. He would prefer buying on a setback.
Has had a huge move. It pulled back quickly when the market rolled over. Great growth ahead of them. Don’t try to trade it too much. Just buy it and put it away.
The challenge is do they make enough money from the parts they sell into the fibre networks. History is not that good. Margins remain under pressure. Not cheap.
Has now drop down to his model price and feels it will continue to $12.05 (US$). Earnings estimates are the key here. They had a big negative revision. There is a 2% negative differential.
Doing a reverse split. A lot of people have high expectations longer term. There was a really decent bounce in their group and they did not participate well. Fundamental story is not that good.
Technically, it is developing a bit of a base. If it does develop into a big bottom, it could retrace up to the $4 level over the next 6-12 months. If not, it could be halved from here.