Saturday, May 5, 2012

If You Don't Get Motion Sickness, Look Into Buying InvenSense

Last November's IPO, InvenSense (INVN), had lived a charmed life during the roughly six months since its IPO. The stock started trading around $9 and eventually traded as high as $22 in March. For an IPO mostly missing the initial day hype, the after market results were spectacular.

On Friday, InvenSense got a rude awakening to the realities of the public market. After reporting solid Q412 results, the company provided slightly lower revenue guidance for Q113. This led the stock to plunge 23% on Friday. The stock went from trading over $18 on Thursday to sub $13 on Friday.

In what has been an earnings season of massive selloffs, InvenSense wasn't even the largest sell-off on Friday. Body Central (BODY) saw a 48% decline; previously Riverbed Technology (RVBD) saw a nearly 30% loss on similar warnings (see my article on the plunge of Riverbed Technology). In light of the size of these other sell-offs, maybe the fact that InvenSense was only down 23% can be seen as constructive.

Read the full article at Seeking Alpha.


Disclosure: Long RVBD. Please review the disclaimer page for more details. 



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