It's been over two months since Golden Mean's initial report on Insignia Systems Inc. (NASDAQ:ISIG), and with share prices breaking out to new highs on sharp volume increases this past week, we thought it would be useful to provide readers with a reminder. ISIG stock ($3.75) is beginning to take on the look of a potential momentum stock, and Insignia Systems is already profitable, with potential catalysts on the horizon. We hope some of you took the opportunity to initiate positions in ISIG during the August dip toward $2.50, but for those still on the sidelines, we suggest learning the story first, while stating our opinion that ISIG stock should tick to at least $4 very soon.
Q2 results (reported July 19th) are now ancient history, but worth noting for continued increases across the board in revenues ($5.85M; $5.12M of POPSigns), gross margin (55.2%), and operating income (865k). Expenses were held in check, leading to EPS of .06 for the quarter and .10 for the first half.
Golden Mean Stock Report likes the Insignia story, and we think ISIG stock could have legs from here. We encourage readers to learn the ISIG story and pay particular attention to how the company's relationship with Valassis unfolds and contributes to the earnings picture. Longer-term, the antitrust case proceedings will attract speculators and could lead to increased volatility. We don't like to chase stocks, but after the healthy pullback and subsequent breakout, Golden Mean Stock Report likes ISIG stock, and suggests readers keep a close eye on the name.