LIVE
I was a buyer of LIVE Yesterday Sub $1.70, here is what I like. I was originally a buyer of LIVE in the 1.50's and 1.60's when they came out with a .05 quarter, thinking the stock would make a run to $2+. I sold out in the 1.90's before earnings because I didn't want to take the risk, at this point they only put up one good quarter.
Now there was some noise with the quarter the income tax benefit, and the other income, and subtracting the writedown (charge) which was roughly 772k. If you take out other income, you take out the benefit, and take out the one time charge you come up with .081, which is up from .047 sequentially.
Now the worry of LIVE being a one quarter wonder is over in my opinion. They have shown they can produce solid if not improving results.
Also the reason why your buying this stock is because of the manufacturing segment (straight from the 10q with the proformas).
q3 16 19,243 (17.0% y/y Revenue Growth)
q2 16 18,448 (12.1% y/y Rev Growth)
q1 16 16,190 (7.6% y/y Rev Growth)
q4 15 16,007 (Live Acquired then in q4)
q3 15 16,450
q2 15 16,451
q1 15 15,052
As you can see by the chart above Revenue growth since LIVE acquired this business is accelerating. I think this is a fantastic trend.
So If they can earn .08 a quarter, we are looking at .32 going foward, pop a 10 multiple on this stock and the stock could be worth close to $3 in my opinion. This quarter was far better than I possibly could of imagined and revenue growth is accelerating since LIVE took over this business. And thanks to these momo based investors they drove the stock down to almost where it was before the run originally only the growth trends are far more clear, and the earnings are far greater.
Conclusion: I think LIVE is very attractive in the upper 1.60's low 1.70's the stock has come all the way back down on a great quarter, yes there was some noise in the quarter, but as investors it is our job to look beyond the noise and what I find is and accelerating growth story, with growing EPS, LIVE in a lot of ways is a much better buy today at around $1.70 then it was when I brought it the last time in the 1.50's and 1.60's in my opinion. All is just my opinion, and I could always be wrong though.
