NTRI down 33%
We made money off NTRI a while back but I left after a while. My reasons were basic: market saturation.
I said on August 23rd:"While I think that they can continue to grow, I have concerns about the actual growth rate. The huge growth isn’t over on a Year-over-year basis, but it is slowing on a sequential basis. I think that this is the last 2 quarters of huge growth."
I reiterated in January, 2007 "I'll pass on NTRI - no momentum, possible future misses, and no major growth"
NTRI's mistake, like NFLX's btw, is to depend too much on the US market. They could easily tap into other markets but management is unable to do o. That is a major blindspot in the business and ultimately it speaks to management limitations.
Are they oversold? Possibly. They have a 10 P/E and are communicating flat growth. I suspect further weakness if the economy starts to soften. But it's not unreasonable. I prefer not to buy dead-growth companies.
The lesson to learn: sales growth and earnings growth will always determine a stock price over the long haul.
I said on August 23rd:"While I think that they can continue to grow, I have concerns about the actual growth rate. The huge growth isn’t over on a Year-over-year basis, but it is slowing on a sequential basis. I think that this is the last 2 quarters of huge growth."
I reiterated in January, 2007 "I'll pass on NTRI - no momentum, possible future misses, and no major growth"
NTRI's mistake, like NFLX's btw, is to depend too much on the US market. They could easily tap into other markets but management is unable to do o. That is a major blindspot in the business and ultimately it speaks to management limitations.
Are they oversold? Possibly. They have a 10 P/E and are communicating flat growth. I suspect further weakness if the economy starts to soften. But it's not unreasonable. I prefer not to buy dead-growth companies.
The lesson to learn: sales growth and earnings growth will always determine a stock price over the long haul.
posted by Andrew at
7:10 AM
2 Comments:
"The lesson to learn: sales growth and earnings growth will always determine a stock price over the long haul."
Very well, this is INDEED my lesson from this stock. Thanks for just highlighting it again.
which is why I stayed with TRID so long - strong sales/earnings growth and a really low PE
Post a Comment
Subscribe to Post Comments [Atom]
<< Home