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ZAGG Inc Message Board

  • rumorwhisperorbuzz rumorwhisperorbuzz May 28, 2013 1:33 PM Flag

    When the gap fills... Look for $6.50 and Beyond

    The sell off was overdone
    The shorts here are strong but the market is stronger
    The chart tells the story and it's a story of caution for anyone who's short right now

    Gaps love to fill and when this one fills there will be a squeeze

    See you at $7 and Beyond

    Probably much sooner than you expect

    Sentiment: Strong Buy

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    • You and I have both been posting on Yahoo since 1998, so I'll bite. Why do you think we'll see a quick recovery in the price? Is your conclusion based just on technical analysis?

      • 1 Reply to pdlenter
      • Unfortunately, I don’t have a crystal ball to see how this will turn around but I have seen gaps fill many times before and the chart certainly shows a very big gap. I’d love to see what statistical information you have on this one; Yahoo claims a market cap below 156M, a forward P/E of 6.4, a PEG of 0.32, a manageable amount of cash and debt, positive cash flow, high insider ownership, a decent amount of institutional ownership and a small number of insider transactions (albeit a fairly large number of shares).

        IMHO, the company’s bread and butter was their invisi-shield product line, but with the invention of near scratch proof glass that product line is now past its prime. The rest of their products certainly have the potential to keep Zagg going sideways for many years but they are going to need another blockbuster product if they want to return to the days of rapid growth and prosperity. With that said, the share price appears to be a bit oversold so I expect the gap to partially fill and then move sideways until they have something new to offer. Many here have talked about HzO and its potential but we can’t count on that one until it happens. If HzO performs as expected it will be great news for HzO insiders yet Zagg will only benefit indirectly via their 22.8% investment in HzO.

        By the way, blockbuster products only come along once or twice in a lifetime. Zagg had their turn but now it is gone. Some here think that the near field speaker system is another blockbuster but I’d debate that (consider the fact that very few of my acquaintances have ever heard of it).

        Near $5 I rate Zagg a strong buy but near $6 it becomes a hold. If HzO goes public in 2014 and Zagg spins their shares to Zagg shareholders then $5 will look like was a great bargain. If HzO goes under and you sell your Zagg shares for $6 then you'll still have a nice return; just not as nice as it could have been. Here at $5 the downside risk appears to be low and upside potential exists.

        Sentiment: Strong Buy

 
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