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Machine Vision
The Company
At first blush MVSI looks attractive. According to most of the quantitative measures employed in this Snapshot, it sports a cheap valuation relative to its peers. At $3 a stub, MVSI has sunk to a shadow of its former high of $15 and change, achieved in mid-August of 1996. Why isn't the Street snapping up shares? A closer look at MVSI's turbulent past lends some insight into the Street's reluctance, as well as the perils of a decision-making strategy rooted purely in quantitative analysis.
MVSI stock was pummeled when its lead market maker and underwriter was expelled from the securities industry by the National Association of Securities Dealers for defrauding hundreds of customers. Stratton Oakmont Inc., a Long Island securities firm, is generally credited for MVSI's precipitous plunge from $9 3/8 to $5 5/8 a share, as well as the wholesale dumping of other Stratton stocks back in January. Fear may have created a buying opportunity as investors jumped ship in an attempt to disassociate themselves from the scandal, but other concerns have also plagued the company, leading to further decline.
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