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INVN- InvenSense-11.91 at time of Report
We are suggesting long positions in INVN here anywhere in the 11.70-12.15 areas as entry points.
INVN if you are not aware, is rapidly emerging in our opinion and others as THE LEADER in motion sensing technologies. These vary from the motion sensing WII games you or your kids play, to gyroscopic devices, controllers, chips and more that will be going into smart phones, tablets, games, and soon wearable computing devices.
INVN came public not far from where it trades now with a high of 22 and a low around 9.
Last week they reported YET ANOTHER amazingly strong quarter of 65% sales growth and 110% earnings per share growth. The stock lifted from 9 to 12 and we see a base pattern here that will soon emerge with projected higher prices into the 15-16 area for 25-33% gains from here prior to the next earnings report.
They are taking market share from their main competitor STM, which went so far as to file a baseless patent infringement suit against them last year. 8 of 9 claims have already been laughed at by the patent office. STM is worried that INVN will take their Apple business away, and they should be because its going to happen based on what we are reading and management is indicating.
Already, INVN has 30% of their business from Samsung alone…and have over 7,000 developers working on products from their technologies.
We would advise you read up on them at seekingalpha.com for a lot of good articles. Type in INVN in the search box and read.
In the meantime, we look for this stock to explode higher in the coming months from this $12 area. Currently trading at 15 x earnings estimates with projected 30-50% growth well into the future… its not going to stay cheap for long.
In the past few quarters institutions and mutual funds are increasing their positions aggressively while its cheap, we know, we read the filings.
Below is the chart patterns we like…. the weekly MACD is about to break to the upside confirming a new uptrend… we plan to be on board.