It was interesting to me that last weekend you asked if anyone knew anything about PCTH or PCTHW. This happens to be my big holding at the moment that I cant seem to sell and do much short-term trading, because I am too afraid of being left behind when it goes up. I have been invested in this company for 15 months now and it's future potential just gets better all the time, in my opinion.
I noticed you have at least three company's stock warrants in your personal list of holdings. I was glad to see that PCTH warrants were your top choice in your research. Although I own PCTH common stock, my favorite choice is the PCTH warrants. The common closed at $5.25 and the warrant closed at $1 11/16 Friday. These warrants have an exercise price of $4.6875 and are not callable by the company until the common stays at $9 3/8 or higher for 20 consecutive trading days. The warrants don't expire until summer, 2001.
By the way, PCTH meets your criteria for growth. Earnings in year ended 5/31/97 were .17. Management is comfortable with analyst estimates of .25-.35 in current year. Sales were $34M last year, est. to be $50-60M this year, and management's goal is $150M by 5/31/2000. Pacific Aerospace & Electronics is benefiting from big increases in orders from Aerospace & Defense, as well through acquisitions. A number of these are in process.
For anyone interested in more informationrmation on PCTH, it is located under the new Aerospace & Defense category that the thread asked SI to create. Buzz Mills provides an end-of day recap after every trading day, as well as about five links to all historical and current information about the company. There are people who trade PCTH short-term and hold long-term, but everyone feels this is a superior company. Now if I could just learn to trade at the right times, I could get even more profits.
I forgot to mention these facts on the warrants: If the stock rises to the $9 3/8 callable price, the common will go up about 78%, and the warrants will provide a return of about 177%, or more than double that of the common. Of course, if the stock were to go down, the warrants would decline at a greater rate than the common. I find that most investors are more comfortable with the common, either because they don't understand warrants, or don't like the extra risk. |
