Ashraf Eassa
Long/short equity, contrarian, independent research, tech

Fusion-Io: A Better Story Than STEC, But Downside Risks Should Not Be Ignored

Fusion-io (NYSE:FIO) is a name that, despite a promising start at its IPO in 2011, has proven to be a volatile and, ultimately, poor investment, as shares currently trade below the IPO price of $18/share. The firm, well known for best-in-class technology differentiated by unique software, was stripped of its premium valuation following a series of unfortunate events, beginning with order push-outs from major clients, and then punctuated by the abrupt resignation of the CEO and another co-founder. The stock is well off of its IPO price, trades at nearly a third of its peak, and the sell-side has abandoned the name. I believe that at $13.67, the shares are at least worth another look.

The sTec Parallel...

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