Geoffrey, I like pcss for a number of reasons(I'm banking that they have fixed their expense problems, though). First their revenue increases have been extraordinary, and up until the last couple of quarters, their earnings had similar gains. Their share price to sales is way under a $1. Their 52-week trading range between 16+ and 5 1/2. Their limited # of shares outstanding, 5.7 million. Their secondary offering of 2.2m shares were at $14 (I see alot of support here). Much of top mgmt. came from CompuCom, which is another well run company. They are based in Dallas, where I live.
I heard about the company from some CompuCom folks, when their fellow associates were being hired by pcss. I was with a computer mfg. that sold to CompuCom. Also, from my experience with this computer mfg., I know that the parts and warranty business is god awful tough, and ugly. It would take us months to procure the correct parts to many PCs and peripherals. It is a low-margin business. So if some company can do this better than others, of course manufacturers will give this business away. Especially, if say, PCSS can be behind the scenes (outsourcing) and come across as a Department of Compaq or IBM, or whomever, to the customer.
Still, I'm hoping they have the adminstrative side, and accounting side, of their house in order. I have not visited their facilities yet.
That is a brief summary. |
