New Good Buy Alert - added ADNC

Earlier this week I posted update on my watchlist and my good bet list.  I talked about Audience(ADNC) could potentially become one of those dark horses in tech stocks, but was still trying to wait for better pricing as the current prices look about fair value.  However, this is only assuming that there are no good catalyst for the stock.  Yesterday's after hour trading made me curious as to why it's still going up when it seems to be fairly priced.  After some research and I've decided to put this on my good bet list for now.  Here are the 3 main reasons:

1. Signs of heavy insider buying.  Potential buyout?
2. More upsides than downside due to good fundamentals
3. More than usual volume and the stock is trending up

Another factor is that I know some people who worked there who used to be my collegues.  From what I've heard, the company seems to be very enthusiastic about their new products and everyone is working hard.  This is yet another sign of good future prospect.  If you want to invest in a company this small, how much potential a company has is very important.  Ofcourse, management is very important, but we should also look at people who works there.  Are they very optimistic and enthusiatic at what they are working on?  Are they willing to take the challenge and make products that are much better than their competition?  Are there good talents?  It seems to me that answers to all these questions will be reflected on the stock price and I am willing to bet that it's more toward the upside.  If this optimism in the company kept on going, it would also influece the likelyhood that a big company who are looking at acquiring Audiance's to make the deal.

The main bet is that it will get acquired by big company at the much higher valuation.  This seems like a more likely scenario due to Audience's CFO's massive insider buy even at a relatively high stock price.  There's only one major reason why people (especially executives) buy a stock(especially their company's), and you know what it is.

There are many ways to play this more safely by hedging or having a stoploss just in case something went wrong with the company.  As long as you are carefull with each trade.  I don't see a reason not to buy this stock at the current price for it has a potential of going 25-50% sooner or later (if it will happen, it will).

Now, have fun with trading and good luck!!!   :)

Update: JPMorgan Global Technology, Media and Telecom Conference Call May 14, 2013 - http://seekingalpha.com/article/1435551-audience-s-ceo-presents-at-jpmorgan-global-technology-media-and-telecom-conference-transcript?source=yahoo