Zagg Inc (NASDAQ:ZAGG) solution for iPhone 4 antenna problem comes in handy, especially when Apple offered to pay for them. Traders didn’t find that appealing last week, but new winds have blown on Monday.Increased trading volume and a few price spikes on Friday indicated the possible rally. Zagg released a PR during the weekend, in which they presented the neat cover for iPhone, solving the antenna problem. The perfect timing further fueled the previously vague effort of bulls in pushing up the price.[BANNER]
invisibleSHIELD product represented the majority of the sales, which could be boosted in the third quarter related to the recently emerged iPhone 4 antenna problem. The company started 2010 operations with 8% increase in sales as compared to the same quarter in 2009.
The product seems appealing, as it appears invisible once attached to the device and the sale price is set lower compared to Apple’s case for iPhone. Sales growth over the recent year confirms the popularity, but the recent attempt to boost the top line resulted in increased SG&A eating away the profits.
Stock pricing looks questionable without the business model that could expand sales indefinitely. Additionally, the company is forced to sell stock to keep the cash flow positive. This practice forced nearly 10% dilution for shareholders over the past year.
