VASCO Data Security International, Inc. (NASDAQ:VDSI)

CAPS Rating: 4 out of 5

The Company designs, develops, markets and supports open standards-based hardware and software security systems that manage and secure access to information assets.

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Player Avatar sehawk99 (95.99) Submitted: 9/2/2011 5:50:14 PM : Outperform Start Price: $6.65 VDSI Score: -8.87

I sold this stock back at $14 and change. Now here it sits just below $7. I'm not sure I will buy back in, but I think it's worth a shot with regard to a CAPS entry. Yes, the services they offer are, or should be, in high demand. The problem is that VDSI has no real moat to speak of. In their industry, I view them as competent but not formidable. The PEG ratio at 2.5 is higher than I like, but tolerable. The P/E is now more reasonable at about 19. All in all, I'm thinking the stock has a reasonable shot at a 50% gain in the next year or two.

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Member Avatar sehawk99 (95.99) Submitted: 9/7/2011 8:31:29 PM
Recs: 0

And now, it sits just below $6 rather than $7. LOL. It dropped almost 14% today, apparently as a result of a downgrade by an analyst from buy to hold.

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