Tuesday Morning

FIO Weekly Chart

FIO Daily Chart

Fusion-io has been a disappointment to say the least.  Since late April the stock price has dropped about 40% and nearly 60% since hitting it's all-time high in November.  It has only closed twice (9/21-22) below Monday's last trade of 17.61.  It still has a lofty P/E of 55 based on forward estimates and the last daily candle was a bearish engulfing beauty.  Not a pretty picture.  Analyst estimates range from 20 to 35 so everyone is wrong so far.

On Monday FIO announced they now have CSCO as a customer.  That list also includes ORCL, HPQ, IBM, DELL, AAPL, SMCI, FB, SAP, RHT and CTXS among others. 

The short interest is nearly 20% and on average trading it would take more than 5 days to cover.  I can't say it's a buy right here right now but it sure is tempting.  I'll be keeping it on my screen and a green candle is about all it will take for me to dip a toe with a tight stop.

(Short interest information is from Finviz.)