Conviction: 3/5
could go up some more in near term, but looks quite risky long-term (5+ years)
General Thesis
Growth
Value
Fundamentals & Balance Sheet
Potential Risks
could go up some more in near term, but looks quite risky long-term (5+ years)
General Thesis
- weekly RSI showing bearish divergence
- recently had multiple touches on long-term channel resistance (1991)
Growth
- Gross margins (90%) at historical highs
- Revenue growth (18%) also high relative to own history, maybe 80th percnetile
Value
- P/FCF about average in the last 12 months
- P/S at historical highs (about 80th percentile)
Fundamentals & Balance Sheet
- low debt to asset (<1)
- quick ratio mild (.8)
Potential Risks
- could continue to hug upper resistance
- short term bounce is possible, last time price touched trend line it took 4 years to touch bottom trend line
- Historically no bullish divergence before bounce