Charles-
It's nice to know that I'm not the only shareholder of PSDI. As you may have seen, I have been posting company news here, but no one has ever responded until now. PSDI is a fantastic company.
There is no reason for the decline, other than market mood. PSDI has been in a trading range for the past several months for a few reasons, IMO. First, the declining rate of growth from the 100% growth experienced over the past few years. This slowing is not a problem, but it is only noticeable due to year over year comparisons. Another possible reason is the management shuffling that has occurred. For example, there's a new CEO, after the founder and long-time leader, Bob Daniels, resigned. The stock's volatility is likely due to the extremely small float, probably less than 2 million shares.
PSDI is now trading at a P/E of less than 19, based on calendar year 1997 EPS. Considering a 3-5 year future growth rate of 30-35%, the stock is very cheap. PSDI has a PEG (P/E ö growth rate) of about .55, compared to the software industry's PEG of nearly 2.
From the current price, I calculate an average return of 45% over the next 3-5 yrs.
If you look at the chart, you can see a support area around 29-31. I don't expect the stock to fall below $30.
Welcome to the thread, Charles.
Todd |
