Small Cap Stock Pick : VISN
VISN was recently IPO’d not too long ago in december and hasn’t done anything too exciting as the market has been extremely weak over this period. Although VISN’s stock chart has become increasing bullish especially after todays breakout of its ascending triangle pattern on increased volume.
Looking forward analysts are expecting 204% revenue growth in conjunction with 338% earnings growth which gives VISN a low forward P/E ratio of 15.21 compared to the industries earnings multiple of 28x earnings. Given these estimates VISN holds a future fair value near $16/share compared to todays closing price of $9 which gives us plenty of upside potential. As well Credit Suisse gave an outperform rating which resulted in todays rally and breakout.
Technical Analysis:
Usually in breakouts like this price will retest the midpoint of the breakout candle. So i want to pick up shares of VISN on a dip at or around 8.30.
