Novice Investing - Omni Visionary

Date: Monday 01st 2008f December 2008 03:56:26 PM

Omni Visionary - 12/2/2005

By: Novice Investing Staff

It seems like we missed the train on OmniVision Technologies Inc. (OVTI). Back in mid October, you could buy it at $ 12 per share. Meanwhile, OmniVision spotted a clean balance sheet with positive net cash of $ 5.35 per share. Our article back in early November estimated that OVTI can only earn $ 0.54 versus Yahoo! mean estimate of $ 1.18.

Well, it looks like we were too conservative about it. Late Thursday, the company announced a second quarter net earning of $ 0.42 per share. As we have said, we are not that particularly familiar with the industry and this renders our estimate inaccurate.

Still, it is interesting to consider what it would have liked to buy OmniVision at around $ 12 per share. Two months later, it has risen 79% to $ 21.56 per share recently. Looking ahead, the company expects third quarter net earning of 33 cents per share, which brings total earning to $ 0.75 per share for just six months.

Overall, OmniVision is out of the trouble land that was plaguing it over a year ago. Analysts expects the company to grow earning by 25 % annually over the next five years. With a clean balance sheet, it is up to management to execute well to drive the stock price even further. After all, the company is in the industry at its early stage of growth.




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Disclaimer: The sole purpose of this article is educational. This article is merely the opinion of the writer and is not in any way a buy/sell recommendation regarding OmniVision Technologies Inc. (OVTI) or any other securities.

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