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Author: maniladad Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 254  
Subject: Re: more comments on INVN Date: 9/6/2012 9:14 PM
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I noted earlier that INVN has been going down since March, when it hit 22 or so. As I remember, it's gone through 2 cycles where it has fallen to about $9.50. It looked to me as if the stock were headed down to that $9.50 level again and I put in an order just above that. After thinking of all the things that I don't understand about this stock I cancelled the order.
One of many things that bothered me was the portion of the net income that was going to preferred shares. (This is all available on Yahoo! Finance.) In the annual report in 2010 net income was 15.1M and 12.2M (81%) went to preferred stocks, leaving 3.0M for common stocks. In 2011 the figures were 9.3M, 7.7M (83%) and 1.6M for common stocks. In 2012 the figures were net income 36.9M, preferred stocks got 20.6M (52%) leaving 16.3M for common stocks. It's likely that if net income increases greatly, the percentage going to preferred stocks will fall dramatically but I don't know what the deal is and not knowing is enough to keep me out.
There were some other bookkeeping things that I didn't understand but that may be a result of my ignorance rather than a fault with the company. Among these were an annual $2M discrepancy between capital expenditures and increases in property, plant and equipment and an income item of $77M for 'cash from financing' with a listed debt of only $42K. Perhaps you can figure that out yourself.
As I said, not knowing is enough to keep me out. I'm not savvy enough to advise you as to what you should do with this stock. I would suggest you go to www.stockcharts.com, enter INVN in the proper box, then at the bottom of the page click 'P&F chart'. Even if you're not familiar with this type of chart, it will give you a better picture of the overall trend of the stock price. (X's are ups, O's are downs, the little numbers represent months with a,b & c for Oct, Nov, Dec) You can go to the StockCharts School to learn about P&F charts if you like.
Good luck
D
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