I’m running out of time today, so you get a quickie: Louis Navellier’s latest “stealth buy” promo, solved for your pleasure… but without any real analysis from me.
The ad is for Navellier’s Emerging Growth ($995/yr), and it pushes the possibilities of small caps and the particular appeal of one small “secret” $14 stock that has advanced photonics on which the military relies.
Here’s the opening pitch from Louis:
“Next-Gen photonic systems developed by this tiny tech company are indispensable to the high tech weaponry and sensor systems included in Trump’s $21 billion defense spending increase. But it gets even better…
“This ingenious outfit also produces thin-film processing technologies vital to the Internet of Things, solar power, and cloud computing. Over 60% of the world’s magnetic media is produced using their systems.
“Sales are expected to soar 109.2% and earnings by 116.2% year-over-year. This bargain share-price can’t last. Fast action is vital to claim your share of the profits…”
And while he talks up many of the company’s products and technologies, he focuses particularly on a “night vision” product:
“… this tiny company’s technology just hit the bullseye on one of the military’s greatest concerns. It’s why I call these tech geniuses…
“The Masters of the Night
“This company has ripped the cover of darkness off our enemies—a staggering blow to furtive, merciless terrorists like ISIS and Al Qaeda.Are you getting our free Daily Update
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“For their revolutionary accomplishment, the DoD named them the sole technology provider of one the key segments of military offense and defense, namely:
“Nighttime surveillance, detection and destruction of not only conventional enemy forces, but also today’s elusive terrorist fighters.
“Yet, this technological achievement is not even hinted at by their current share price.
“It’s still trading below $14 a share.”
So… hoodat? Thinkolator sez this is Intevac (IVAC), a tech supplier that’s been around for decades, with a focus on thin film technology and processing — their two main product lines appear to be equipment that’s sold to hard disk drive makers for magnetic media processing (they do say that 60% of the world’s magnetic media is produced on Intevac systems); and digital-optical sensors for the military, used for night vision and other products. Navellier’s Portfolio Grader page on IVAC is available here if you’re curious.
They had a big stock price jump over the past six months, and are in the midst of growing earnings dramatically, albeit from a very low base (they’ve had pretty stagnant revenue for years, and have lost money every year since 2011, presumably because of softness in the hard disk drive market with desktop sales weak and solid state drives rising in popularity). They are still very small, with a $250 million market cap, and seem to be in some significant transition now, with analyst estimates improving, but I have no idea why or what the story is. The stock peaked out just below $14 a few weeks ago, and has since dropped 10-15% and trades in the $11s now.
And, well, I said I’d keep it short — so I’ll hand it over to you. What do you think? See excitement ahead for Intevac, or is this a one-time pop that won’t be sustained? Let us know with a comment below.
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