IGOI Inc. (IGOI) is a small cap play on large cap Apple Inc (AAPL) and a potentially cheap way to play the new iPhone and iPad sales into Christmas. iGO has been a leader in the mobile accessories industry since 1995, offering premium power solutions for laptop computers and electronic mobile devices that enhance the possibility of living life fully charged. iGO's universal chargers, batteries, and audio accessories offer revolutionary support and performance that elevates the mobile consumer experience across all pursuits and passions. So what has this to do with the huge move in Apple recently you ask. The simple answer is power chargers. As you may know all new Apple products have switched to a new charger and IGOI is a provider of such chargers. News of the new iPhone sales and iPad sales have helped send its shares soaring in recent days. It seems logical to assume IGOI will benefit this Christmas as consumers look to buy car chargers and new chargers for their products.
IGOI is not without issues, no surprise given its 30c stock price. But it still offers a very compelling value play here with cash on the balance sheet of $11m, no debt, and a market cap of $9m. Yes, take out cash and IGOI trades for a negative valuation! The company is still in the midst of a turnaround and that is why we see the stock price down 75% this year. However, right now the chart is setting up very nicely for a rebound into the busiest time of the year for IGOI, Christmas. Small cap stocks tend to outperform when the market is in an uptrend into December and IGOI has a chart supportive of a large move. Dilution is not a risk right now given their relatively low cash burn and cash balance. A break of 37c, the 50 day moving average should bring a fast move to the 200 day moving average at 52c.
IGOI is not without risk, it is a 30c stock afterall. But with risk comes rewards and with the company trading under cash value in a business that should do very well in the coming month the risk reward looks very attractive. IGOI also sales chargers for Android products too so all smartphone angles are covered here. For long term investors a small investment at 30c, in what could be considered an options priced gamble, could yield big rewards in 2013.
Disclosure: I am long IGOI.