ClearOne Inc [NASDAQ:CLRO] has over the last few days 0recovered most of the losses from late August and the better part September. From a technical analysis perspective, the stock is at a price level where it can go in any direction. Ideally, the best entry point for this stock would be any price level above $3.
However, looking at it from a fundamentals perspective, its current price makes for a good entry price as well and has the potential for more gains. There are a number of factors that likely to drive up bullish sentiment in this stock in the near-term. Some of them are as below:
One of the biggest buy signals in the stock markets is insider buying. It usually points to a situation whereby people who have a close relationship with a company have faith in its growth prospects. A few days ago, ClearOne Inc announced that it had agreed with a group of institutional and accredited investors, Edward Bagley (It’s the largest shareholder), and its CEO Zeynep Hakimoglu for the purchase of 2,116,050 units of common stock at a price of $2.4925 per share.
In most cases, insider participation leads to an increase in stock as the fundamentals behind such a move start to unveil. In the case of ClearOne, it makes the stock’s current price a perfect entry point, for investors with both short-term and long-term projections for the stock.
It is also noteworthy that the company intends to use the proceeds of the sale to bolster its working capital. This means that in the near-term, the company is well-positioned to carry out its operations without the risk of running out of money. This is a critical factor that could see it gain in value going into the foreseeable future.
A patent win
Back in August, the company announced that the patent trial and appeal board of the U.S and the Trade Mark Office had ruled in its favor in a case against Shure. The company announced that the ruling significantly limited Shure’s 493 patent touching on beamforming microphone arrays.
This is a technology that was pioneered by ClearOne. The company stated that it believed its products do not infringe on Shure’s patent claims. This win is a big deal and is likely to have a significant impact on the company’s revenues in the long run, and by extension, its stock value. This further adds weight to this stock’s potential in the long run.
About ClearOne Inc
ClearOne Inc designs, makes, and sells networking solutions. It is based in Salt Lake City, Utah.