No. of Recommendations: 1
Right now, I'm leaning toward buying more shares. At $700 MM market cap, it's trading for about 2.2-times sales of $320 MM. If it can sell $500 MM and kept that same multiple, it would be at $1.1 billion market cap, about a 60% rise from here or about $7.35 per share. I could lower the basis of my position to about that level by buying 60 shares or so (which would bring it up to my 3% highest-risk sizing). However, there's a lot that has to go right for the company in order to grow sales by 56% ($500 MM vs. $320 MM). A $2.70 share price gain vs. a potential $4.60 loss is not a very favorable ratio. It really depends on how much product the company can sell.

More thinking required.
-- Jim

I think if you re-read what you wrote a few times, the decision will come to you. ;)

Personally, it sounds like a lot of "ifs" to justify an improbable outcome (your gain/loss ratio).

Rob
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