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eMagin Corp. Message Board

  • stockresearch555 stockresearch555 Apr 24, 2013 10:03 AM Flag

    EMAN -- Low Risk, High Return... Part 2

    And, later this year, we could get more good news with the resolution of the government’s sequestration, which would remove a risk to the revenue line and could increase “contract” research revenue. Or, they could announce (or allude to) yet another EVF contract with a different mfgr, or announce they have perfected direct patterning (whatever that is), or some other good news.

    So, even if there is another disappointment regarding 2Q (1Q should be fine), I think the stock’s downside is limited. Just remember, after six-nine months of tinkering with the new machine, management is much closer to getting it fixed and running properly than it was nine months ago when the stock was also at $3. The point is that nine months ago, the stock deserved to be at $3, but now that they are closer to realizing the benefits of the new machine, I think the stock deserves to be materially higher. Investors must realize, however, the machine is a new generation machine, much more complex than the old one, and consequently, there is a lot of learning. Plus, it is a machine, and machines break from time to time. The Setalla will help offset any production losses due to the failure of the new machine. And remember, EMAN is financially strong (cash, no debt, free cash flow, stock buyback program, etc), which will easily get them through any rough period.

    With this post, I am just trying to make everyone realize that you cannot wait till the good news comes out to buy the stock because by then it will be too late. Just look back at the chart and see how quickly it can move from $3 to $7. There are very few institutions involved with EMAN right now, but when the company puts up a quarter or two of strong growth, they will return. All of the above is just my opinion. Invest at your own risk.

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