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Let me present to you a possible scenario. On December 15, 1997, PSI hosted an analysts meeting during which they presented their strategy for the future of the company. A very sketchy copy of the presentation is available through the PSI investor relations department. At least, after I read the info posted in this site regarding the meeting, I called and received several pages of what appeared to be the slide presentations and of course, no real details. Anyway, The presentation included possible values of the IIXC holdings in the years 2000 and 2001 based on various multiples of earnings in those years. My reading of the information showed values between $40 a share in 2000 to an extreme of $80 a share in 2001. Granted, these are NOT PREDICTIONS but scenarios based on management's best guesses on where they can take the company with their current business plans. But, the presentation showed that the possibility exists for the company to earn as much as $4.00 per share in 2000 and $6.00 a share in 2001. No one knows, but any reasonable investor can follow the progress of the company and assess the progress and then make a buy or sell decision based on performance. It seems very stupid to me to consider taking $10 a share, with no future growth possibilities from this source. To me that represents maybe $1.50 profit for more than a year and a half's worth of pain, a lot of risk,lots of averaging down, and riding through a terrible decline during a strong bull market. In other words, sell out on the first bounce. That's pretty stupid! The Freidman Billings analyst was at the meeting. Chris uses Freidman Billings. Is it possible that the investment banker also sees great potential (and lots of fees) in this transaction???Perhaps Chris sees $40 to $80 a share potential in the next 3-4 years???One must assume he and his backers are not totally stupid! I think it takes a very stupid investor to take small gains (or losses) and leave the big bucks on the table. The problem is the world is full of them. Most of the people who post here don't do ANY homework. They think someone else is going to provide that TIP that's going to make them rich. Finally, I too am disappointed in the performance of the company and the stock. But, I read this week that this revolution we are in could be as significant as the industrial revolution. Win or Lose, this company is a player. I'm very interested in being on board for the ride. I am a risk taker. If you are not a risk taker, sell your stock Monday morning on the opening. It ain't a blue chip. And if you haven't done your homework, quit your bitching.Bob, addressed to you, but not directed at you. |
