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...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
PRO Top long ideas returned 21.7% in 2016**
"As a PRO member, we get uniquely valuable perspective that go beyond our quantiative analysis... We rely on PRO to get beyond the numbers quickly and add much needed perspective. It keeps me ahead of the next big thing. - Mark Choate, Malaga Cove Capital"
Mark Choate, Malaga Cove Capital
"Contributors (writers and commentators), often have a long history in the secuirities they opine on and some are clearly well positioned industry participants with detailed industry views that can help provide color on where the skeletons are buried in a particular secuirity and/or industry."
Jim Roumell, Roumell Asset Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details