Barchart.com's Chart of the Day - Intelligent Systems
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 INS - Intelligent Systems Corp
SymLastChgPct
INS11.45-0.56-4.66%

The Barchart Chart of the Day belongs to the technology services stock Intelligent Systems (NYSEMKT:INS). I found the stock by using Barchart to sort today's Top Stock to Own list first by the highest Weighted Alpha, then I used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Spotter signaled a buy on 6/28 the stock gained 53.95%.

Intelligent Systems Corporation's main focus is to help entrepreneurs build valuable companies by forming flexible partnership arrangements with early stage domestic companies. They bring value to these companies by providing practical business advice, a proven incubator program, early stage equity capital and a network of business and financial contacts.

INS

Barchart's Opinion Trading systems are listed below. Pleasenote that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.

Barchart technical indicators:

  • 100% technical buy signals
  • 272.30+ Weighted Alpha
  • 236.56% gain in the last year
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 11 new highs and up 52.17% in the last month
  • Relative Strength Index 75.27%
  • Technical support level at 13.33
  • Recently traded at 14.59 with a day moving average of 9.83

Fundamental factors:

  • Market Cap $122 million
  • P/E 41.61
  • At the present time Wall Street analysts and the individual investors who post on Motley Foll at not following this stock
  • The only coverage is by John Leonard, CFA who writes on Seeking Alpha, he points out:
  • Key takeaways

    • Intelligent Systems (NYSEMKT:INS) is ripe for activist involvement as persistently high R&D spending on the unprofitable IT segment is offsetting the "boring" yet profitable industrial products segment.
    • Moreover, this high spending is depressing cash flow and results in an inflated valuation, which discourages many value investors (and PE firms) who might be attracted to the otherwise positive fundamentals.
    • Furthermore, the internal tech incubator distracts management from focusing on the core business and should be gradually wound down while investments in early stage tech companies should be sold.