Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev | Next
Author: emferguson Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 265  
Subject: My favorite is a short Date: 1/23/2002 2:50 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 3
Can a short be entered? InVision Technologies (INVN) makes bomb detectors. It's stock soared from single digits to 47 after 911 and the shoe bomber, but not on increased orders or profits. In the low 30's, it's PE is 400. To justify the valuation, everything has to go perfectly: the FAA has to order bomb detectors for every airport, foreign orders have to come in, little business can go to competitors, and no one else gets FA certification. The toughest part is even if the company increases production as much as they hope, that's 50 units a month, which is not even close to the 2,000 machines the FAA is expected to want plus foreign orders. It might use contract manufacturers, but how much will that cut into margins? how many more people do they have to hire to install and service these machines, and how long to train them? To make matters worse, they've had some poor results in tests. To be contrarian, analysts whose companies make a market in the stock have rated it a buy AFTER it rose. Sounds tech-bubble like. In brief, this is a strong company but hopelessly overvalued stock which soared on speculation and is doomed to a serious decline.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Value Hounds

Netflix Riles Investors
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.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement