IS NXX OVERSOLD? The company announces record revenue and net income on reduced expenses yoy. Trading at less than half revenue and less than ten p/e ratio with high double digit growth rates. Not sure about the q4 as that's when there are accounting adjustments made which doesn't necessarily reflect the business of the quarter.
Clearly the company is moving in the right direction. Stock based compensation is all non-cash and really doesn't reflect the business. I agree that the spending on the criminals - the lawyers and accountants - is too much in this case - need to bring that up with management. Gross margins need improvement.
The company is on the right path comparing it to its past. But I think they need to:
1) Increase manufacturing to increase economies of scale
2) Direct materials are typically 70% of manufacturing costs - always a need to secure better/cheaper sources of raw and input materials
3) Keep expenses under control - overall they've done a far better job then last year but the legal and accounting do seem very high.
But overall the company seems to be in a very good position so I'm questioning the sell off. If management continues to execute cost reductions and increase margins this will be one of a few of the venture winners this year