PerfectData (PERF) is a 20 yr. old company that designs and markets computer
and office maintenance products as well as ergonomic products (footrests,
wristrests etc.).
On 5/30/96 PERF introduced STARNET and PerfectTrade, an Internet trading
system
that will enable buying & selling of stock over the World Wide Web. This is a
system reminiscent of WIT brewery, but unlike WIT, PERF has the full backing
of NASDAQ, the SEC, and most importantly, will be up and running soon.
Stephan Beauchesene V.P. of NASDAQs media relations said "this will be the
FIRST NASDAQ company to use the Internet for trading". He continued,saying
the NASDAQ is supporting this concept, that NASDAQ will be watching
PerfectData closely believing that "the investor should have as many options
as possible" and that "obviously we're (NASDAQ) very interesting in how this
turns out".
STARNET /PerfectTrade will be NASDAQ's standard for BROKERLESS online
trading with buyers/sellers posting buy/sell notices and market makers
competing for that business.Investors will also have the option of directly
contacting the listed Market Makers.
PerfectData will NOT charge a transaction fee for use of the system. Revenues
will come from the market makers as well as marketing the
STARNET/PerfectTrade system to other companies wishing to trade shares
directly over the Internet.
STARNET, a Web Server and Internet Access Provider is a subsidiary of
PerfectData and will manage the website and its trading activity.
PerfectData has also just opened an online storefront called "Office
WareHouse". Office Warehouse at present has over 6000 office products
available for sale directly over the Internet. These include many different
brands of computer peripherals and accessories as well as PerfectData's
complete line of office and computer care products.
PerfectData is cheaply priced at present levels with earnings of 11 cents per
share and a P/E of 22. This price range does not even come close to
reflecting the added value Its New STARNET/PerfectTrade system and Office
Warehouse concepts will bring, augmenting their earnings substantially as
well as putting them on the front lines of the HUGE untapped market of online
trading and online storefronts.
Conclusions: PERF is a small (3.2 million shares outstanding) undiscovered,
undervalued stock that should be selling at substantially higher levels (6 -
8 $) even without STARNET/PerfectTrade and the Office Warehouse concepts.
These two new parts of the business add value that is hard to estimate at
present, but
obviously as this story unfolds this stock WILL rise much higher. With a
miniscule float of less than a million shares, a low price of less than $3
and the hot buzzwords of BROKERLESS ONLINE TRADING as well as a
"Cyberstorefront" these shares will very easily make a HUGE move both long
and short term.
I have spoken extensively with PERF's V.P. and special counsel, Bruce Stuart,
and he has informed me that the Securities and Exchange Commision will send
them a Letter of NON-Action (approval) soon (personally I believe they already have it and are waiting for JULY 2. Whichever the case,-An official announcement concerning the SEC is expected soon.
PERF has been a VERY thinly traded stock with average vol. only 300,000
shares traded for an entire QUARTER. Upon announcement of the release of
STARNET/PerfectTrade
the stockpromptly traded 650,000 shares on Fri. 5/30/96 and another 600,000
on the following Monday. At this price along with all-time high volume, this
is an excellent entrance point.
STRONG BUY-PERF
Final Note: The information and quotes were either directly to me in talking
to their V.P., from the Ventura County Star (PERF is located in Ven. Co.) or
was info I got from V.P. at Prudential Securities
NOTE: This post was originally posted about 3-4 weeks ago. Since then the price has remained constant and volume has dried up indicating no sellers. Charts look very good I see 8-14 dollars in 3-6 months.
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