Folks,
Since there is a lot of interest in PMTI's shareholder meeting held this
morning, here is a post from someone who attented, found on the PMTI board on
the Motley Fool's AOL site:
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Subject: Re: Volume and $ Jump
Date: 15 Sep 1997 14:37:33 EDT
From: JMurphy226
Message-id:
I was at the meeting for 2 hours this morning, and was a little
disappointed due to the lack of any real significant new information,
especially the fact that there was no knowledge of the reason for the
previous few days price and volume increase. I thought they would have
info on this. Anyhow the new info that i collected was the following:
--Georgiev is no longer Chairman of the Board, Valente was chairman of
the meeting.
--They said that they have extensive contacts with Blue Stone financial
consultants, and are working hard with them to come up with ways other
than debentures for future financing. They said no more debentures will
be issued.
--The 3 Denver Columbia-Palomar centers have opened with excellent
results, and customer satisfaction. They haven't posted pr on this
because they said they are going to have an open house out there before
posting anything..
--September was looking at record epilaser distribution and revenues
--There was an article in the Boston Herald on Friday the 12th of
September giving a lot of credit to Dan Valente saying that he appears
to be turning the company around.
--by the end of the year all loans will be collected(about 1 million
from officers and related parties has already been collected due to my
research into sec documents)
--3 centers each month till next year when about 5 per month
I personally asked 2 questions. First one about R&D. I asked with the
six million spent the first and second quarter on R&D has there been any
advancements made in the current technology or in new technologies, the
response not too detailed was that they are doing exciting things in R&D
and in 2 to 3 years probably will have some excellent new products to
introduce to the market. Second I asked Joe Caruso for current cash,
current ratio and expections for third quarter earnings giving that the
quarter is just about over. He gave me second quarter ended figures for
cash and current ration, and as far as earings only went as far as to
say that they will be less negative than second quarter. Valente still
holds that earnings negativity will be reduced third quarter and fourth
quarter with profits coming early next year. The stock fell apart after
the meeting.
Also Nexar is doing real well and have partnered with Comp USA, and they
said that will start to see Nexar products in stores everywhere pretty
soon.
Let's see what happens to third quarter results in early
November...................Murph
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Here are a couple of comments:
It is not news that Georgiev is no longer chairman. Anyone who read the
definitive proxy issued in July new that he was not standing for re-election to
the board of directors. Neither was Michael Smotrich.
The 3 Denver laser centres openened last month, so it is far too soon to make
claims about excellent results or customer satisfaction. Wait until the hair
grows back in a few months.
I offer the following with the caveat that I have only a minimal understanding
of the stock market, so this is pure speculation, and may well be completely
erroneous. I would be interested in the opinion of experienced investors:
The lack of any news that would explain the incredible volume and price surge
of the past three trading days, leads me to speculate that there is some sort
of manipulation taking place, perhaps a short squeeze. As of mid-August, there
were 1.5 million shares still being held short. A short squeeze causes share
price to rise rapidly as shorts have to quickly buy shares to cover their
positions. This tends to draw in momentum investors. The close proximity of
this event to the annual meeting seems to have fueled speculation of a buyout,
which would only have added to the hysteria. If I am right, look for the price to
collapse back to $2 very soon.
Ted Molczan |
