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InvenSense, Inc. Message Board

  • blueribbondude blueribbondude Mar 12, 2013 1:42 PM Flag

    Starting my DD

    For the experienced board members: Why the high short interest? What's their reasoning and how is it flawed. I see strong rev and earnings growth and I'm scratching my head. Thanks.

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    • This is my first comment on this board. You seem to be looking for a rational explanation and my 20 plus years of investing experience tells me this is probably just a case of piling on and nothing more. People see others shorting a stock and they want to get in on it just like people buy when a stock goes up. I am in for more than the current price and dont plan on selling. At some point the shorts have to close their positions. People seem to always forget that.

    • INVN is a high growth/high value/high risk stock. High risk due to playing in a highly competitive field. Some end product areas are sticky in that they have a long life-cycle spread over many years. However smartphones/tablets are the opposite where models are refreshed every year and require a component company to work damn hard to maintain their slot, let alone to try and grow. At some stage shorts expect a slip up.

      Of course the fight with STM gets some extra attention, with the short interest now higher than before, however its pretty much impossible to quantify the affect.

    • buynsell is right. If you compare the drop in INVN with the timing of AAPLs analyst day youll see that it tanked asoon as it was clear that Tim Cook would make no mention of the iWatch or INVN period. After that it dropped hard from 15-14 then fluctuated and eventually plunged yet again when it was downgraded from Baird. Recently it popped up from 11-12 on two things: news that the STM lawsuit is looking very weak, and also some firm (I forgot the name) thinks INVN will definitely be in the Iphone 5s. The lawsuit is an actual fact but the iphone 5s thing is still pretty much just speculation (with perhaps a little dd behind it). May not be a bad time to pick up after this drop today.

    • I've only been watching for about a month, and the best explanation I have read was that much of the climb was based on expectations of big Apple win. It dropped when Apple gave no mention of INVN in iWatch or other new product releases so everyone assumed the worst. STM patent lawsuit was other bashing point. Baird and someone else downgrade...blah, blah. The recent reversal came with stay ruling by US Patent office and article that INVN is likely supplier for iPhone 5. I am staying light here for now. It keeps piercing 12 but can't hold it.

    • STmicro is shorting to make it difficult for INVN any way they can.

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