INTT = Huge turnaround play heading for double digits IMO.
INTT swung deep into profitability of +.11 EPS last Q. I'm expecting up to triple that next Q. Here's why:
(1) Conference call noted bookings one Q = sales the next. Bookings end Q1 = $14 million. Sales of $14 million = +200% YOY jump and 46.9% sequential.
(2) CC notes indicate: "to be conservative" -- 35% material cost + 5% sales comission = 40% "theoretically 60% of incremental revenue drops to the bottom line" Doesn't expect SG&A to go over $4 million per Q for rest of year. Do the math -- realistic +.33 EPS pre-tax or more.
(3) +.33 EPS annualized = $1.32 per share which is just insane for a stock price this cheap. INTT could run wild into the double digits per share on earnings and/or pre-announcement of earnings. $10 to $15 coming IMO and well over $20+ very possible.
(6) The industry itself is going absolutely nuts. What's in store for INTT for Q3 and beyond? .50 EPS quarters or a $2 annualized pace? Pick whatever fair PE ratio you can dream of and you get a massive turn from here.
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