Dallas Salazar
IPOs, contrarian, long/short equity, long-term horizon

Imprivata: A Devaluing Commodity And Disappearing Cash Flows

Very rarely are there cases in which I can go into a trade with as confident a directional bias as is the case of Imprivata, Inc. (NYSE:IMPR). At first glance I was interested in doing in-depth research on the company because I really liked what I saw - negative net income, decent sized trailing 12 months revenues, and a good size market cap. That's essentially what equates to a neon sign for me that reads "short me" when I'm going over a list of recent IPO's, especially ones that have retained value or added to value since coming to market. You want to see a healthy valuation with plenty of room for give before the knife catchers try...

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