You have some very interesting questions, many I am pondering too. We have held several such in recent years, ADSX is another, but they all eventually paid off. If we think of them on an annual basis, something like IDNX is suddenly a 50% gain, after hanging in the red for almost 2 years. If someone told us that we could make 25% per anum on this stock, we would be very happy. 25% compounded about doubles in 3 years. Yet it has happened in a couple weeks.
Will it happen here? Your guess is as good as mine, but we are still here, so we must be gambling it will recover and maybe prosper. Others like IDNX always seemed to have orders, and new developing relationships have given it legs. We have not seen the base of constant sales, just potential. The potential in this industry seems limitless as long as we live in uncertain time. My guess....the trend will support this industry..maybe not this company. However, the medical side could be huge as we boomers develop prostate problems etc. I have had OSIS, along with INVN. It moved after 9/11, but has never done much. Until the government protects cargo coming in like it does much of the airlines and passenger safety, OSIS will remain about where it is. JMHO. Three of my teams on the board tanked today. The Seahawks are my superbowl team. Go hawks!
II wrote..."Also you're right about IDNX...still a little left to go. The buyout price works out to $8.39, and current price is $7.78. The deal isn't expected to be closed until June...which is a lot of time. A lot of things can happen between now and then...most of them bad. VISG has a shady history also. I felt that IDNX was a good buy-out candidate...but never figured it'd be VISG."
Careful on this one. There is a 20 million dollar breakup fee on an "all stock" deal. I tried to short VISGD and got a message that "no shares were available to borrow". I wound up buying puts instead. The fact that there is a very large discount of 10% on the IDNX shares makes me very skeptical. By the time the deal closes, IDNX shares could be worth less than they were before the merger. Utimately I think IDNX will be worth more than it is today, but I wouldn't be surprised if you might get an entry point in the low 6's between now and when the deal closes. L1 is not VISGD. They are a private investment partnership that owns $100 million worth of Viisage stock. They're using that stock to buy IDNX.
Good call King. I didn't buy any GIGA when you first mentioned it, but did check it out. Longer made a nice call earlier this year as well with the WTHN IPO. Good job guys...keep the picks coming!
Like I said previously...I have a feeling that the microcaps are going to be back in favor again...like in 2004. Heck, IMX is even up 21.2% for the year thus far. I know it's only been less then 2 weeks into 2006...but I have a good feeling. DOW is up 2.3% so far this year, NAZ 5.1%. In the small cap portion of my portfolio, my "worse" small cap is up over 9%...and am up 24% overall on the micros. I'd be happy if that were a 2 MONTH total, rather then a mere 2 week total. Today's IDNX news certainly helped the cause.
And NO, I'm NOT bragging about my personal gains, but rather bragging on the MARKET so far. 2006...the year of the small caps. I'm sure that many of you that like to invest in these type of stocks are having alot of success as well...and continued good luck to you all throughout the year. So far, so good.