The month of June and July will be soft overall for the market, I will be buying on dips picking up small qty over the next 2 months. The stock should rebound when we get into the August, September time frame.
We should see a slight bounce back tomorrow especially if the naz pick up a little.
Based on the .02 cents earnings the stock will dip which would be a great time to load up. Q2 and on should show improvement on GP especially with All AMerican out of the way. Patience will be the key with this stock, they need 2007 to continue their progress.
Today's report was a mixed bag. Short term disappointment due to decreased net income from bad debt charge, but this is a one-time event and hopefully net income next qtr will be much better. The company stock repurchase should help the EPS as well, and you gotta love it when a company buys back its shares, as it is a sign that the management has faith in the future of the company.
Continued revenue growth was a big plus and in my view a more important point to keep in mind. The inventory issue worries me a bit, but it hopefully will improve in the next few qtrs as well.
I liked the following phrase:
"Within the renewable energy industry, IXYS supplies chips that control/regulate high voltages between DC energy (windmills/solar panels) and AC energy (U.S. electric grid). In addition, IXYS has developed solar cell arrays and cards for charging portable batteries."
I wonder how much growth in business they will see from sales to the alternative energy sector. Seems to me that the explosive growth in solar and wind energy should translate to tremendous growth in sales for IXYS, as well.
So it looks like possibly another quarter of stagnant share prices, but I agree that it's a good time to load up if you are a long term investor. The company's fundamentals are still good and I think the stock is still way undervalued. Wall Street will eventually notice the value of this company.