BSQR- Surprised at the stock action
Either the stock is worth $10+, or it's not. If it is, I don't get why it's languished around $7 for a month now. If we look at dozens of small cap($100M- $5B) tech stocks that had blowout earnings in the past with positive guidence, few languished for more than a few weeks before taking off to new highs.
I understand that BSQR was $4 not too long ago and is now $7, but after the Mar qtr earnings, everything changed, and the stock became worth $10. Engineering service margins are expected to go from 17% or so to 25% or so. That alone is huge, despite the fact that they might not post the same June qtr EPS as the Mar qtr. Bottom line is, the company is growing quickly, will likely post $.50-$.60+ for 2015, and the Google connection alone is a strong point to make for a higher than normal valuation.
I believe BSQR should recieve the same PE going forward as AMOT or AAOI, which each have gotton to over a 20 PE going forward(for 2015) already. If it does recieve the same PE, it will be a $10-$12 stock. I bought 10K more shares around $6.50, and would buy more if I wasn't already loaded.
