Thoughts on reasons for the sharp selloff in FALC, or is it just due to the down market?
My take on the company's future: The company will soon be done with the investigations, freeing up cash and management attention and removing a cloud over the sales process; management has beefed up with seasoned execs; a good, revitalized product lineup is being sold increasingly through an expanded network of partners; the reduction in sales from legacy channels is largely complete, which will allow attractive comps to prior quarter sales and earnings going forwards; management, the CEO particularly, while well paid in cash, has a significant equity incentive to make this company work. All this suggests that results and therefore the stock will be sharply higher over the coming year. As Warren Buffet said, if you wait for the birds to be singing, Spring will already be here and you'll have missed the change in seasons. I've seen this before in Isilon Systems, which traded as low as around $2 in 1998, only to be sold for over $30 two years later.... although admittedly those were different days and the sales valuation was high.