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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 135  
Subject: more comments on INVN Date: 9/1/2012 8:32 AM
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This is my comment in response to John Reeves' third article promoting INVN. It contains some of the same information that I posted here earlier, although in a somewhat different, expanded version. I still can't shake a feeling that something is not quite right with this stock.
D


Hi again, John. More comments on INVN: Steven Nasiri, the Founder, CEO, President and Secretary of INVN apparently got 9 million shares when the company went public in Nov 2011. As I noted earlier his salary is 'only' $645K so it may not be too surprising that he sold a little under 300K shares 2 days later. (He got another 673K shares from the non-open market 4 days after that.) Also understandable that he sold 1.3 million shares in March and even that he sold 15K on 6/18/12, 5K on 6/19 and 50K on 7/25. What puzzles me is why he sold exercised stock options in lots of 5000 shares each on 8/2, 8/3, 8/6, 8/7, 8/15, 8/16, 8/20, 8/21/, 8/27 and 8/28. The total for the last group is only 50K but why the unusual pattern? I've never seen anything like it.
There were a couple of other things that I noticed that I don't understand. For the past 3 years capital expenditures have run a bit over $2 million dollars a year but 'property, plant and equipment' have only increased by about $400K per year, leaving a discrepancy of about $2M per year. Do you know where it went?
Another thing that may be one of those bookkeeping quirks that I've never understood is that the bulk of their increase in cash and cash equivalents in the last annual report came from $77 million worth of 'cash from financing' and yet they have only $42K in debt. I'd like to know how to do that myself.
I also noticed that over half, 56%, of the net income in the 2012 annual report went to preferred shares and in previous years the proportion was even higher, 83% in 2011 and 81% in 2010. Could that be a problem in the future?
Finally I see that Mr Nasiri has founded and sold at least 4 previous MEMS companies in the past. I don't know how shareholders fared in those transactions. Do you have any information on this? Is there any danger of market saturation in the sale of MEMS companies? What about MEMS chips? Obviously INVN is not the only company making them.
On a different note I see that the stock price has swung widely since the company went public and that it has fallen to a price of about 9.50 before rebounding, on a sudden increase in volume, although each time to a lower high. Since the overall trend since March has been downward and with the present price in the mid 12's, are you sure that now is the best time to buy?
For the record, I have an standing order for a modest number of shares of INVN at a modest price. But there are still a lot of things that don't seem quite right to me and I'd appreciate your insight.
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