The analyst plans to take some profits on AXTI if dilution is authorized on April 14, then decide after earnings whether to average up.
Dilution risk with vote scheduled; positive CEO comments on revenue growth and scaling capacity; insider sales not considered relevant.
$AXTI report earnings end of April I'm currently up ~718% Dilution risk with vote scheduled 14th. I'll take some profits if that gets authorized. Will then decide post Earnings whether I want to avg up or not. CEO said "We are in a strong position to achieve sequential revenue growth in Q1, driven primarily by growth in indium phosphide for the AI infrastructure build-out." Just wondering what they'll say r.e. InP export permits, but overall comms coming out from $AXTI is positive around their scaling capacity and balance sheet positioning. Also yeah, insiders are selling shares, but that signals nothing to do with future company performance. Insider sales literally does not come into my thinking ever.
| Horizon | Raw move | vs SPY |
|---|---|---|
| 1 day | +3.5% | +2.6% |
| 1 week | +28.6% | +24.1% |
| 1 month | +96.0% | +87.2% |
| 3 months | -2.5% | -13.2% |
| 6 months | — | — |