Interphase Corporation (NASDAQ:INPH)

WEB NEWS

Monday, February 14, 2011

Research

On February 11, 2011 we initiated a short-term trade in shares of  INPH @ 2.89

Our impetus for this trade was motivated by

  • last Friday’s release of INPH 2010 fourth quarter results, when it reported positive EPS of $0.06, its first profitable quarter after five straight quarterly losses.
  • A stock that was selling at less than 2x book of $1.53.
  • A technical break out from what we call a flat line formation.

INPH closed out Friday’s session at $4.10. We plan on selling INPH soon.  The company did not provide a 2011 outlook, making it hard to value shares which appear over valued on a trailing basis (with negative trailing EPS). We may plan to interview the company in order to develop a financial model for 2011.



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