Replies to post #10 on Dynavox Inc fka DVOXQ

[jimmenknee]

Perhaps elcheepo-- but I see it as an initial legitimate negative reaction that is over-reaching. It's in the same vein as an over-enthusiastic run up that stretches the fundamental base value.

I think we see a 1-3 session leveling w/ a technical return to the bollinger bands. Additionally, unless you believe as an earlier poster that they are on the brink of bankruptcy (SEC files do not support that suggestion IMO), I see 3 significant events that will then help determine a longer short-term direction:

10/4 (Monday): Company to introduce new speech platform (seen as neutral-positive)

10/19: IPO Lock Out ends (ty for your link to bring this to light :-) -- seen as neutral-negative)

11/11: 1Q Earnings Report (the big question to be answered WRT direction)

[elcheepo]

Piper Jaffray is out with a research report this morning, where it reiterates its Overweight rating on DynaVox Inc. (NASDAQ: DVOX); it has a $20.00 price target on the stock.

The PJ analysts said that the company’s speech technology line will have a tough comp, adding that speech generating devices and related equipment are roughly 81% of overall DVOX revenues.

The analysts also noted that, despite the difficulties in the US economy over the last 3 years, DVOX “grew revenues at a CAGR of 17% from FY07-FY09. Over the last 9 months revenues were up 34%. In other words, we believe the quality of the products and service, the under-penetrated market, and the increasing marketing push from DVOX have contributed to the counter-intuitive growth.”

As for valuation, the analysts noted, “Our 12-month price target of $20/share assumes a P/E multiple of 31 times, representing the average P/E of the top half of our small cap medtech group with earnings, applied to our CY11 EPS estimate of $0.66/share.”