My Continuing Love/Hate Relationship with Radvision

Just when I had pretty much thrown in the towel on Radvision (RVSN), the video-conferencing over IP and 3G networks company threw me for a loop with news of an insider stock purchase. The stock has gotten absolutely crushed this year, and is down a whopping 40% YTD, due to a string of lower earnings guidance for the last few quarters. While the company enjoys a very close relationship with Cisco (CSCO), I am of the opinion that it has taken that relationship for granted, and lacks the focus and drive necessary to bring in other customers, and grow the business.

A few days ago, the company received permission to purchase up to $30 million in stock. The skeptics among us may see that as a PR stunt to boost the stock, but in addition to the news of the company buyback, the more interesting headline was that Yehuda Zisapel, a former Chairman of the Board of RVSN, and the brother of the company’s current Chairman of the Board, bought $2 million of stock.

What should one make of all this? On the one hand I can’t stand when companies talk a good game and fail to deliver. On the other hand, when the former Chairman puts in $2 million, I am intrigued. With the stock so far down, it may pay to start getting back in and slowly build a position. Of course as soon as I do, I am sure something else bad will happen, and it will start to drop again!

Disclosure: The author has a position in RVSN, but not in any other stocks mentioned, as of November 23, 2007.