Hello John,
There is little I can add to your post. You echo the same questions that I have asked many times.
As far as your questions for Jack, I think you have answered them in the same way he would answer them. More specifically, he would say that he never wants to disappoint PTEC investors again. He therefore, is going to be very conservative in his forward statements and we will just have to wait to see how high over the bar he can clear. Jack would add that he lost about $5 to $6 million annually last year when DEC was absorbed into CPQs commercial division. As I explained here before, (perhaps you miised it), PTEC only does business with CPQs retail division and does not supply their BIOS to CPQ's commercial enterprise division, where most of DEC's business went. Hopefully, this can be rectified in the future, but as of now, the majority of DEC's business was lost. Off-setting the DEC loss in the future will be the addition of IBM's business, but this is still phasing in and will take another quarter, or so, to fully ramp up.
John, the questions you ask relative to Wall Street investor's blind spot for PTEC, and many other good smaller tech stocks, I can't answer. In 30 years of investing I have never seen anything like this period. I can only tell you that I am at a loss as to why the market has not taken notice of PTEC. For me it is irrational that IBM and the other large cap stocks, as well as the Internet stocks, continue to make new highs every day, while very good companies, with good balance sheets, such as PTEC, struggle to get off the bottom. Admittedly, I have thought for a very long time that small cap techs would rally and sustain that rally... Unfortunately, until now I have been wrong.
Like yourself, I also have a very large investment in PTEC. However, unlike yourself, my average cost is higher than Jack's and Bob's 9 3/8 per share price. But I continue to stay invested in PTEC and hope that we will be rewarded for our patience within the next six months.
Jules |
