Not "trying" anything. Just new to the stock and initiating a dialogue. If I thought it were undervalued, I would be long. But, this one appears grossly overvalued and going lower. I shorted over $74 yesterday and close to $75 today. The Roth report gave me a chance to increase my short position today. Roth is a major (if not the major) OSI banker, so their analyst's opinion is not credible (especially since I have experience with Roth). Over time, this stock will settle down to where it belongs. If not, I will lose money. If it goes where I think it should, I will make a solid ROI. Time will tell. If you can tell me why it should go up from $74 though, I would appreciate it.
The metric that stands out to me is the multiple of sales at 2X. With sub-6% net margins, it would seem a multiple of sales of 1X would be more appropriate (since these are industrial margins), but maybe they deserve a premium for their growth rates and consistency. Still, maybe 1.25X? 1.5X? I bought ETN recently when it fell below $40. I realize OSI has some medical technology and ETN may not be a perfect comparable, but it's in the financial profile neighborhood of double digit growth, solid balance sheet and relatively low (industrial-like) margins.