<< Look at the following stats on ptch >>
It sure looks like a good growth story is unfolding.
With the steady growth of their earnings and the purchase of Cook Bates, I guess we know some of the reasons why Pacer has been inching up, over the last 6 weeks or so.
Regarding some of the comments, made here, concerning stock options:------
Using stock options as compensation, to officers and directors of a company, are pretty common events, IMHO. As long as they don't start unloading "all" their shares on the market, or it isn't a significant dilution of shares, it isn't necessarily a bad thing.
In reading thru the annual report, there were several option agreements made back in 1994 and 1995. It appears that the options are being exercised at a somewhat restricted pace, which really isn't too bad. And, it also appears that the officers own a bunch of options that they "can't" exercise. Does anyone know if there were any more recent additional agreements? Does anyone have any more details or insight into this?
If the officers are holding a bunch of shares, that they bought for about a buck, or a bunch of options, exercisable or unexercisable, then they have an incentive to grow the company and drive the stock price up.
In 1997 they purchased California Chemical, and integrated it fairly successfully in the main company. Now they have purchased Cook Bates, which appears to enhance their business and should fit very nicely into Pacer. This next quarterly report will tell quite a story to us.
In the meantime, it seems that Pacer has some pretty decent management. In light of all of the positives, plus Pacer's revenues looking like they will go from $26 million to about $50, I like my long position right now.
Regards, Bob |
