October 3, 2010 | In: Technology

DynaVox: A Stock That May Rebound

I usually check the top losers for the day and see if there are any interesting stocks. I found one: DVOX. The stock went down 32% on very high volume (over 13 times the average volume), and it may very well drop more (maybe another 10%). The stock dropped after the software company withdrew its previous guidance for its 2011 guidance, claiming that the market is softening. The company is specialized in software that will overcome mainly speech disabilities.

Now what made me pick this company? Look at the current EPS, it’s 3.04, the company has a P/E of 1.79 (stock is currently trading at $5.44). Personally, I would wait until the stock drops to somewhere in the high 4s and buy a small position, just for fun.

I think DynaVox, with its very small size (market capitalization is $51 million), has a huge potential to be acquired by a large company that will benefit from its technology.

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