This micro-cap tech company is speculative and trading at a discounted level, but the shares tend to rise rapidly on good news.
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Innodata (INOD)
From Contra the Heard Investment Letter
Digital services provider Innodata’s (INOD) recent quarterly results were not good. as revenue declined by about 5% and the bottom line registered a loss of $1.7 million. In addition, management was not as optimistic as usual on the conference call. That is exceedingly abnormal, as we have listened to countless INOD quarterlies and never has one been this glum. The pro forma revenue estimation for the upcoming quarter of $13.4 - 15.3 million is not rosy by any means.
Fortunately, the balance sheet is squeaky clean with money in the bank and nominal debt. This provides the enterprise time to reenergize and proffer better numbers. Given that we have made money from this corporation in the past, our feeling is that patience will once again be rewarded.
While many stocks have relatively smooth charts, that is not the case at all with Innodata. When good news arrives, the stock price can jump quickly. Those who own it should take quick advantage, as there is a tendency for it to drop just as fast. This is definitely a stock for the nimble, although it appears to have formed a nice base, giving people an excellent opportunity to buy-in.
Benj Gallander, Contra the Heard Investment Letter, www.contratheheard.com, gall@pathcom.com, 416-410-4431, June 21, 2017