Monday, April 18, 2011

iGo Inc. (NASDAQ: IGOI) Q2 2011 Price Target

Recent price: 2.45$
P/E Ratio: 107.83
3 Months Target Price: 4$

Company Description
According to data provided by Reuters, iGo, Inc. is a provider of products and solutions for the electronics industry. iGo sells its products through retailers, such as RadioShack Corporation; resellers, such as Superior Communications and Ingram Micro, Inc.; wireless carriers, such as AT&T; and directly to end users through its iGo brand Website, Its power products, marketed under its iGo and iGo Green brands, include a range of green alternate current (AC), direct current (DC), combination AC/DC and battery-powered universal power adapters, as well as its developed line of green surge protectors. The Company has three segments: High-Power Group, Low-Power Group and Connectivity Group.

Confidence Margins
Strong resistance $5.19 (+112%)
Light resistance $4.12 (+68%)
Light support $2.35 (-4%)
Strong support $1.80 (-27%)

iGo Inc reported results for it's fourth quarter of 2010 that proved to be very disappointing compared to what analysts were expecting. This sent the company's stock down, thus offering investors with a good entry point for the quarter.

Entry strategy
For the cautious investor:
Buy the stock for 2.55$ or less.

For the risk-taking trader:
The June 2011 2.50$ out-of-the-money call option contract seems to be the right position to take, they can be acquired for about 150$ per contract.

Exit Strategy
For the cautious investor:
Sell when the stock reaches 4$, or keep it until 5$ if you are more bullish in your own analysis.

For the risk-taking trader:
The contracts should be kept until the underlying reaches around 4$. This should provide a satisfactory return if the underlying reaches the target price as the contracts will get in the money.

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