I bought PSAI, today.
From biz.yahoo.com
52 week range: $2.938-$24.125
Outstanding: 7.14M
Floating: 3.30M
Book value: $11.79
Earning: $ 1.23
This stock dropped from $10, couple days ago.
Current price, around $3 3/8. IMO, this stock dropped
because news on July 29, 1998. They announced,
estimated Q3 loss $0.05-0.07. For the last six months,
they have $4.3 profit or $0.6 per share. So, if Q3 loss $0.05-0.07,
their nine months profits becomes around $0.54.
Using PE 20 for ave.industry, its price should be around $10.8,
the same price before dropping, right?...:)
Additional information from July 29 news, PSAI expected to take
an additional charge of approximately $13 million to:
(i) increase the provision for doubtful accounts;
(ii) reflect the impact of retroactive changes in Medicare
reimbursement under the Interim Payment System;
(iii) account for certain restructuring charges relating to closing
of unprofitable locations.
If we divided $13M with outstanding shares, 7.14M, their book value
should be decreased by $1.82. So, its bookvalue now should be
around $9.97 ($11.79-1.82). Very undervalue at the current price,
right?....:)
IMO, this because the market over reacting on the July 29 news.
Like PPH, PSAI will hit its bookvalue soon after the market realize
PSAI book value.
From TA, equis.com
Relative Strength Index: 8.370
Stochastics: 7.584
Bollinger bands: out of bands (far below bands).
Easy to see $7.5 soon. By my predictions, we are
going to see $10 anytime soon.
My frame time, one week.
That's all my opinion. Never let the shorters play this stock.
They have to cover their position anytime soon...:)
Remember, always do your own research.
MM |
