Immersion Is Too Cheap

  • Revenues grew 94% while OpEx was down 23%, producing a profit margin of 65% in Q2 while recurring revenues are 91% of revenues.
  • The company also produces solid cash flow and over half the market cap of the company is cash and it has no debt.
  • Yet the share price lingers on single-digit earnings multiples and is downright cheap bringing the cash into the equation, this is a curious case.
  • While one might have to wait quite a while for any upside to emerge, we see little downside from here.
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