Message Font: Serif | Sans-Serif
No. of Recommendations: 0
If you look at the charts for EFII over the past ten or so years, you will note that this is a very cyclical stock with an almost predictable up and down ride that does not appear to reflect the income as much as the expectations of future income. Several months ago, the price was severely depressed so the 96 percent increase represents more the impact of having been unduly sold off than real increase in value. If you go back about two years, the stock is down significantly. As I recall, it peaked at about 45 to 50 before the present sell off began. That peak was about six months after a trough of about 15.
It appears to me that this is a security that one might be able to buy and sell on a two to three year cycle. I do not think there is much risk involved in this since the underlying company has a good product and pretty good financial basics. The worst case would be that one might buy it before it reaches the trough and sell before the peak. That is quite likely to occur. On the other hand, if you buy low and it appears to be on a long term rise, one can either hold longer or sell off enough to cover the investment and continue to "make profit" on a zero amount invested. Personally, I would not buy this one at a value much above 25 orso.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.