My late night take on an intriguing day : PVSW will, I think, gap on Monday and go to 30 almost overnight. Frankly, I'd buy all I could
under 20 if I did not have as much as I do now at lower prices. Let me put
this as simply as I can: PVSW was trading at 36 on Oct 21, and is now
trading at 17 1/2 despite the fact that it is more valuable today than it
ever was.
This oddity, I think, can be easily explained: On Oct 21 our CEO gave
an interview in which he said, in substance, that the company intended to
spend 13 million or so developing and advertising its Tango product line which, of course, includes
Tango 2000 for Linux. Because of these expenses he opined that the company was not likely to
show any profits for the next 4 quarters. Instead of praising Ron for trying to
move the company from a mature and stagnant market to a huge and emerging
one, the pundits and MMs missed his point, transformed his comments into a dire
earnings warning, and punished the stock (which went from 36 to 12 in a
heartbeat). Here we are less than 2 months later, and those same folks have
had an epiphany. They now realize, perhaps because they heard someone
mention Tango and Linux in the same breath, that Ron made the right decision. Withal, I think we are headed back back to 36 (and probably higher). BJ |
