No, not at all,
What surprises is that no long on this thread has asked themselves why
prst split.
Management did not split the stock at 100 or 200 why????
When it needed 10 mm dollars it had to go to a bank and borrow it, securing
the loan with all its assets. Most companies with high growth and capital
needs, which are acknowledged in the 10q would sell shares of stock, i.e. a
secondary, PRST cannot. The last time it announced a stock sale (primarily
so management could sell a major portion of there holdings, the stock
plummeted.
The reason management split the shares, is because the only investor
willing to overpay for this stock, are individuals, led by lutz (who rumor
has it use to be a car salesmen, and other momentum types. An sophisticated
institution doesn't care whether or not a stock is 40 or 80. 9It does care about the
underlying value and total market cap.)But managements
only hope of sustaining this absurd price, is to keep it in the range, where
the uninformed small investor can buy 100 shares under 5k$.
Now you may argue, that the split increased the value of the stock, but
would you pay 240mm more for a company because it will have double the
number of shares. If you say yes, I have some tulips from the 16th century
I have been saving for you.
The move today was irrelavent. If you have the guts, double your long postition.
Other wise, enjoy your day, economics will prevail, and this stock will tank.
Suggest you take your profits on the upswing, on the way down, the door
will be crowded. |
