OVTI price movement last couple of days has been very interesting. Its not clear if someone big is holding the price down to load-up or, unloading a large position.
Yesterday, S&P finally "upgraded" OVTI from SELL to HOLD. Raised price target from $12 to $19. But that didn't help the stock.
OVTI has $400M in cash, another $150M to $200M in WLCSP holdings. So book value is well above where its trading. OVTI also has been improving gross margin. I think it will keep creeping from 20% today to 25% as more purecell makes it mainstream.
Directionally, OVTI will benefit from wearables as they seem to have both LCOS (from Aurora acquisition) and image sensor technology - as opposed to HIMX which has LCOS (but ahead in production).
I don't have a position anymore but its on my watch list as I still think a move to mid 20s will happen at some time. Maybe additional analyst support, stock buyback will be the catalyst to get this stock going.
maybe OVTI needs to do something with its cash, either acquire and diversify or, buyback some shares and get this going back up to 25 again
Is this a market bear raid or, something else?
I was expecting this stock to explode today and instead it looks like its imploding. Very poor technicals now. I am still holding a small position and was looking to add but not with this action on a day like today.
Anyone else trading this stock today?
No it doesn't. If you have a typical online discount brokerage - its part of your margin agreement.
The only way to prevent lending your shares is to hold them in cash account and provide explicit agreement to your brokerage. None of the online discount brokerages will allow this. You can also get paper certificates for your shares which will prevent lending.
This is a classic sign of a huge upcoming move. I don't think a move to $500 is out of question here. It has nothing to do with fundamentals - its just pure and simple squeeze and greed at play.
I think getting into battery manufacturing could be problematic - we know what happened with A123, Valence etc.
I would have preferred if Panasonic was doing this on their own. There is no need for Tesla to be so vertically integrated.
CSCO has been losing market share to Arista, Juniper, Alcatel which are all customers of Finisar. So I don't think Cisco business sluggishness is net negative to Finisar. Remember people were worried about Cisco moving to its own CPAK vs CFP 2. Then there were rumors that Cisco would acquire Finisar... that didn't make any sense. This is a clear bear raid - I would not be surprised if FNSR closes in Green today.
oh I am not worried about FNSR missing numbers any time soon. Finisar played this growth perfectly by building up capacity in Wuxi last year. Even after that buildout, 100G lead times are quite high because of worldwide demand.
are there any details on the downgrade? I wonder if this has to do something with NFLX deal with Comcast. Maybe it means lower spending at inter-connect carriers like CCOI and LVLT?
That is just LivingSocial dumping its stake from TMON. They got a great price
Who would acquire GreyPoupon when the model is failing and the company is struggling to right the ship?