New to the stockHi all. Purchased AVO for the first time today. I bought 5 call options for January 2018 at 13.00. This gives me control of 500 shares for a measly thousand bucks. The far off date for the exercise, helps me de-risk the trade a bit, and I figure that for a profitable company with great upside, paying 1.80 as a premium for 18 months of growth seems like a no brainer.
My interest in Avigilon comes from 2 directions. A young relative who is a recent grad of BCIT had the opportunity to work at AVO for several months. This kid is one smart cookie. He raved about the technology / hardware that AVO has developed, and that they have "the best product out there". He went on about the recognition software that they have, and the significant patents that they have......so they have a kickass product.
I also follow technical trading a bit, and noticed that AVO has fallen from a recent high of 17 to 13 at present. The chart says it is oversold as the RSI is 25. On top of that, the short position on this stock is VERY high, and has dropped from 6% of the float in mid November, to just over 4.5% at May month end. Covering will provide some support, and the oversold should normalize.....so now was the time to buy in my opinion.
The chairmans letter attached to the 2015 annual report is really an incredible list of accomplishments for the firm. That, combined with the profitability of the firm, showed me that AVO is an undervalued company with great upside. Now.....if they can execute on all the promise they show, we should see the stock price solidify, and with any sort of good news from the many initiatives and products they have on the go, they will either do well on their own, or become a target of a takeout by 2018 ( my option expiry date). It seems that some of you are in at a higher price.....perhaps it's time to double down....I am ever the optomist!!!
Good luck to all
Cheers
MC