- Fear & confusion creates opportunity: stock down 45% in 9 months, stock trading lower than lowest analyst target.
- Significantly larger player in a two player market that is expected to grow at a double digit rate for an extended period.
- No debt; large cash balance (21% of market capitalization); healthy FCF; high margins (69% gross margins, 22% operating margins).
- Significant upside: 68%+.
- Risks: competition (losing market share) and slowdown in industry growth.