Interactive Intelligence (ININ): Bulls gone wild?

Interactive Intelligence, Inc.(NasdaqGM: ININ) is so far overbought, it seems that the Bulls have completely lost their mind.

On Tuesday shares rose 20%, jumping from $19.07 to $22.81 on no news whatsoever.

Yes, Tech may be bullish with the earnings news coming out from Intel yesterday. In spite of that, I can't find any reason that ININ would go up more than it already has. Let's take a look at the fundamentals.

ININ has posted some big numbers as far as earnings growth. Approximately 148% yoy. That's great until you look at their top line Quarterly Revenue Growth, which is only 7.5%? Call me crazy, but I don't see a lot of value in 7.5% Revenue Growth.

Next, their P/E ratio is off the charts, trading at 72.41 times earnings. A lot of stocks are trading at huge multiples right now, but why sink your money in ININ when you could own a best of breed tech stock like MSFT, trading at just 15 times earnings?

The Bulls have indeed gone wild with ININ, and it's just a matter of time before shares come crashing back to reality.

Short Interest as % of float is just 2.6%, and don't even get me started on the Call vs Put ratio. November Call volumes total total 232 while Put volume is 3. Apparently there are 3 smart traders out there and 232 morons. But I digress.

Fellow Stockmasters, put ININ on your watch list of potential shorts. If the choppy trading as of late turns into a fully-fledged downturn, overpriced stocks such as ININ should lose at least 50% of their value.

Interactive Intelligence, Inc. and its subsidiaries provide software application suites for voice over Internet protocol (VoIP) business communications.

For you crazy Bulls out there, I'd love to hear your comments as to why ININ could keep going up.

DISCLAIMER: The author has no positions in any of the stock mentioned in this article