The stock has corrected recently, and is now about 15% below the 52 week high of $2.02 made in July. The next earnings could be an important trigger for the stock. It will determine the short term direction of the stock. If the company is able to post good numbers, then the upward momentum will resume and gain strength. The fundamentals have shown improvement recently, and the company seems to be close to achieving profitability on a net basis. The ttm revenues are around $684 million and the net loss is around $15 million. This compares well with the 2012 figures of $650 million and $16 million for revenues and net loss respectively. It indicates that the company may do better than 2012. In H1'13, the revenue were $381 million which is 20% above the $318 million in H1'12. The net loss also declined from $8 million to $6.4 million during the same period. The debt has reduced over the last couple of quarters, though the extinguishment has cost the company $3.8 million as a one time charge. In addition there may be recurring costs. Dr. Frost's support has been the real game changer for the sentiments about the company. Recently, several of his investments have done very well, and many like Biozone (BZNE) still have a lot of potential. LTS stock has not done as well as many of Dr. Frost's other stocks, but is still up 36% on a 52 week basis. However, as soon as the market begins to factor the possible turnaround, the stock may begin to do even better. The price to sales ratio is extremely low (0.47), and the price may catch up with the fundamentals soon. It is important that the improvement in fundamentals is consistent over the next few quarters. There have been some small insider purchases recently, and one needs to keep a watch on that before the earnings.
