Daniel, Thank you for your honesty for accepting you are short.
I can see you are a man of diginity and do some homework.
Before getting into another argument about your question, let me explain to you about figuring out good company. As I told you, I'm a trained engineer. Naturally, my approach is based upon analysis, analysis and analysis.
Your question about intrinsic value of PSIX does not fit to newly developing industry. Think about how those small firms started and check how big they're now. One good example, three graduates from stanford got a job offer from many firms. Two selected NSCP which was in hot red ink and no income at that time. One wise guy went Oracle which was much more stable than NSCP. Guess what? Two dumb novices has 3 to 4 Millon dollars with their stock options. The wise guy? Working hard but with regular payroll(what a pity!). So please skip that logic of intrinsic value! (Warren Buffet never touched high-tech stock)
The reason why I mentioned about their growth in asset(7 M to 201M in one year) was that is the indicator which we can see the prospect of the company. Just one more example. How do you explain the surge of AMTX? The company has small employees, red ink, etc. You shove away this kind of company. It's up to you. For me, I jumped in $17.50. The result? It's around mid 30. How did I do that? The prospect in internet and related communication field!!!
Now look at the market of PSIX. It's simply hard to understand why you guys are thinking about buyout scenario that hard.(expecting big gain, huh?)
PSIX purchased two software firms in 1995 to increase its market share. PSIX has a consistent customers havily concentrated in industry, government and educational and research institution(please refer my previous two threads.)
Daniel, I know you could make some money with your short deal. However, I sincerely believe suggesting the half of current price to innocent investors is a hype and very unscrupulous attitude! If you're a gentleman, you shouldn't say such an irresposible remark to this prospective firm.
I never mention about the tangible value of this firm because I am not trained to tell people some prospective idea. (IMHO, the way to calculate tangible value has some fundamental flaw.)
My belief is in analysis.
Based upon my analysis, PSIX is a firm which has a certain prospect.
Wild guess based upon short information can be disastraous, Daniel.
Anyway, good luck to you. |
