Any idea why this stock has been falling since going past 1000 in April?
Sales have grown 17% & 15% for the Dec’15 and March’16 quarters compared to previous years respectively. And if you look at historical quarters, September quarter is their biggest by a big margin. So good days are ahead.
Read their latest AR. They are increasing their production capacity by almost 30%. Plus they are planning to replicate their USA business model in Europe and Australia. In addition they are planning to introduce their products in India, which I think in the long term will add more value. So long term it seems to have good potential.
The only small negative I noticed was their planned capex coming up in the next year to replace old machinery/equipment. But again to me, that should bring in more efficiency.
I would really appreciate if anyone can point the negatives that I am missing here?
DISC: Invested. Just doubled my position today.