I've been saying the PPS was getting ahead of itself in the $60's. Fair value is in the upper $50's. This is a long play and annual growth is normalizing in the 15-17% level, which is well ahead of the mid-single digits of other laser companies. I'd wait a few weeks to see if this drifts lower with the summer sell-off before pulling the trigger. I am still very bullish on IPGP in the long-term.
In this stock short positions has grown almost to 30%. Most probably IPG will surprise next qtr with earning and it will trigger short squeeze like it happened in Tesla, price will go to 90$ if longs will not start selling.
IPG is making huge problems to its competitors. I am very familiar with metal processing industry and lasers and I know it for sure.
I agree. These dips into the $50's are a buying opportunity. I think folks are having a hard time understanding where IPGP is in terms of growth and competition. A few years ago, they were growing almost 50% a year, but now growth is slower because they are a larger, more diverse company. Much easier to go from $100 to 200 million in sales than to go from $500 million to $1 billion. As far as competion goes, there appears to be almost none according to management on the cc today. The CEO said that they can sell at profit for less than it costs any competitor to make the lasers. I think that really says it all. They are really competing with themselves to scale and introduce new products at this point.