I personally think that the last few quarters has justified MERU's turnaround and if they can get to EBITDA b/e, we see $11 by Dec. If they hit $120MM rev and 2014 projects growth, we could be north of $15.
This all assumes the market cooperates and with the sector booming (look at RKUS) we could easily trend to $5-7 in 3 months. This is a low risk proposition and once of the best NASDAQ plays I see at the moment. If you are interested in another turnaround play, check out ZHNE as well.
Wow... Read this post and then read the recent analyst brief from William Blair and you will see the same rationale for why this is a double in 2-3 months. Great when others thinking the same on why it's discounted and where it can be headed.
Today the leashes were lifted on MERU broke out. The reason for the increase could be renewed confidence, market catchup or a potential suitor. On the last point see how rkus and arun trended lower? Could it be that one is looking to acquire meru on the cheap? Whichever the 3 reasons, it was a great opportunity to load on MERU in the 2's and those that did are reaping the benefits. I sure did...
In fact the market is offering investors a golden opportunity to get a preview of the turnaround before their stocks trend higher. Take MERU and zhne as examples, where you could have bought after earnings and still made a huge % gain once the good news came out! I like those odds.
MERU is in a huge sweet spot and I now hold a ton of shares just like the insiders who purchased on the cheap. Hopefully we hit 5 within a week and I can play the rest with house's $