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INNOVEX INC # Message Board

  • hero_of_troy hero_of_troy Dec 17, 2003 4:30 PM Flag

    KRP deal

    Intially I was of the opinion that KRP deal will help INVX in suspension business, but I step back a little on this view and now think that INVX may NOT be go with KRP deal.

    Three reasons.

    * KRP deal may mess up their balance sheet and anyway KRP is not a profit making firm currently. This may prompt the institutional investors to unload the stock

    * Lack of experience managing suspension business.

    * Prospects of non-FSA business.
    They are very optimistic on this area and expect significant increase in revenues.

    Their balance sheet will look strong throughout FY2004 due to 40 & 80 Gig HDD STX FSA adoption. So their FSA revenues atleast for 2004 aren't going anywhere and their non-FSA revenues shows good promise.

    any comments ?

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    • Now it looks like INVX will go with the stock swap option. Otherwise, I dont see a reason, why they have to wait till the last moment to announce their decision.

    • Hero_:Still in with INVX and waiting. Good move to buy more at these prices. I'm shooting for 20-30 before selling. Once they pick up steam, we should see EPS of $1.00/1.50. I believe Institutions have a similar view.

      I'm long term, so I don't get excited with small ups and downs, even the drop from 15, but it was interesting. I see it as a general downtrend in techs, as STX and HTCH also retreated. Your possible reasons make sense, and I think the balance sheet issue is most important. This has to be weighed against their goal to expand and KRP makes a lot of sense. I worry most about their execution if they decide to go forward. Mgmt. seems to be brilliant with vision , but lousy with putting plans to work.

      • 1 Reply to run35ok
      • "Mangement seems to be brillant with vision".
        You got that right, always jam tomarrow.
        "But lousy with putting plan to work". You also got that right. These guys are a bunch
        of pinheads.
        Look, I will make just shy of a million dollars this year on stocks only because
        I observe what managements do and not what
        they say. Actions speak louder that words.
        I see this stock going south a whole lot more
        as new investors put the pieces together.
        How do I know this, simple I have been around
        this management crew for years. They are not
        capable of delivering consistent earnings.
        The old president, Haley was way more honest
        and truthful with investors. Call me what you
        like, but I understand that it is always hard
        to accept the truth. Remember that investing
        is like a marriage, always invest in stocks
        with low expectations, that way you will not
        be disappointed and you will make a lot of