Gerry- Thanks for the reality check. I believe that if you don't know a good reason not to buy a stock, you don't know enough. I share your concerns about the financial structure, several classes of preferred stock and whatever else. Current P/E is 38, the 2M share dilution brings that up to 45. I expect that this quarter will be about 2 cents per share (counting dilution), unless they really outperform. What I'm really interested in, Gerry, is your impressions of the co. after you visit them. Or have you already?
As I figure it, ACX paid about $1.75 per share, in a fire sale. So I believe that that's about bottom for PCOM. And GP is no longer a competitor, but a partner, so that's an improvement. I hold SFY, which had 6.6M shares this time last year. When they announced a 5.5M share offering the stock dropped from about 10 to 8. But they used that money very, very well so now the stock is up at 22 with good prospects over the next year. If PCOM uses the additional $3.5-4M to great advantage then we will finally see the earnings which they haven't shown so far. I thought, though, that the primary constraint to their growth was the size of their market, not lack of funds.
Also, Tom LaVoy seemed to think that a black cloud had just been removed from the company. If he's honest and correct then good things will happen.
Finally, I got my 2000 shares for my IRA. Of course, I can still lose 100%, but I can afford to wait for a payoff, too. I'm not sure, but I think that Geoff got 5000 shares yesterday.
Steve |
