5-Star Stocks Poised to Pop: Immersion

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Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, touch-feedback technology developer Immersion (Nasdaq: IMMR) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks woefully lag the market average.

With that in mind, let's take a closer look at Immersion's business, and see what CAPS investors are saying about the stock right now.

Immersion facts

Headquarters (founded)

San Jose, Calif. (1993)

Market Cap

$141.43 million

Industry

Computer Peripherals

TTM Revenue

$37.44 million

Management

CEO Clent Richardson (since 2008)

CFO Stephen Ambler (since 2005)

Compound Annual Revenue Growth (over last five years)

16.5%

Competitors

FARO Technologies (Nasdaq: FARO),

Microsoft (Nasdaq: MSFT)

CAPS members bullish on IMMR also bullish on:

Apple (Nasdaq: AAPL),

NVIDIA (Nasdaq: NVDA)

CAPS members bearish on IMMR also bearish on:

General Motors (NYSE: GM),

General Electric (NYSE: GE)

Sources: Capital IQ (a division of Standard & Poor's), and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 1,001 of the 1,027 members who have rated Immersion -- or 97% -- believe the stock will outperform the S&P 500 going forward. These bulls include tortoise702 and moalps.

Late last month, tortoise702 listed six of the stock's strong points:

Touch is the future (Medical devices; touch computers; appliances)
Cash $4.27 per share
No debt
Rapid adaptation is expected
Casinos to use tactile feedback
iPhone doesn't use haptics...YET!

In an earlier pitch from November, moalps agrees, elaborating on Immersion's touch-based tailwinds:

Even if the economy is slowing fast, this company develops technologies that will be more and more used in a wide range of electronic devices with screens. they delivered record revenues for the third quarter, and settled legal disputes, so that management can now focus on the business.

The fourth quarter will be surely slowing in line with the global economic slowdown, but on the mid and long run it will certainly outperform the market.

What do you think about Immersion, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. CAPS is 100% free, so simply click here to get started. 

Beginning Jan. 12, 2009, Fool co-founder David Gardner, Jeff Fischer, and their Motley Fool Pro team will accept new subscribers to their real-money portfolio service. Motley Fool Pro is investing $1 million of the Fool’s own money in long and short positions in a range of securities, including common stocks, put and call options, and exchange-traded funds (ETFs). They also incorporate proprietary CAPS "community intelligence" data into their research. To learn more about Motley Fool Pro and to receive a private invitation to join, simply enter your email address in the box below.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Immersion is a Motley Fool Rule Breakers pick. Microsoft is an Inside Value choice. Apple and NVIDIA are selections of Stock Advisor. The Fool's disclosure policy always gets a perfect score.

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Related Tickers

12/2/2009 4:00 PM
MSFT $29.78 Down -0.23 -0.77%
Microsoft Corp CAPS Rating: ***
IMMR $4.18 Up +0.19 +4.76%
Immersion Corp CAPS Rating: *****
GE $16.07 Down -0.10 -0.62%
General Electric C… CAPS Rating: ****
GM $0.75 Down +0.00 +0.00%
General Motors Cor… CAPS Rating: *
AAPL $196.23 Down -0.74 -0.38%
Apple, Inc. CAPS Rating: ***
NVDA $13.72 Up +0.40 +3.00%
NVIDIA Corp CAPS Rating: ****
FARO $20.86 Up +0.88 +4.40%
FARO Technologies,… CAPS Rating: ****

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