Friday, October 27, 2006

Invitrogen Down, Down and Down...

Can Invitrogen (Ticker: IVGN) ever get it right? Yesterday, Invitrogen reported very disappointing earnings as their gross margins declined to 58% from 64% from last year. The Street certainly didn't like the numbers and the stock is down ~ 13%. I'm very tempted to pick up a little here as it retest it's 52 week low. The company is still buying back stock and is generating a positive cash flow. I currently have a position in Invitrogen.



Edit: Just finished listening into the conference call. What a crappy call! Q4 is not looking good and 2007 is a toss up. This is a good company with good products, but poor execution and bad management. I'm still looking at this as a 2007 recovery play.

2 Comments:

At October 30, 2006, Anonymous Anonymous said...

hi money turtle..
it's official...i'm addicted to blogs...

here's a thought....

i bought ivgn on fri.@ 57.7...
but, after reading your article..i'm pretty sure i blew it....
i hope it holds above 55.8...(aug low)...
otherwise i think it's on it's way down to 51/53....
ivgn @ 51....i don't think this price is possible, but if i see it....
i'll give 3 to 1 odds, buying at that price is 95% succesful...
z-stock....

 
At October 30, 2006, Blogger Money Turtle said...

I think you're ok. I don't see Invitrogen breaking down much below it's previous low ~ $56. I'm considering adding to my position at these levels.

 

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