Amy,
I thought your post was lovely.
As you know I have been in Phoenix for more than a couple of years. I first bought the stock at 12 3/8 shortly after Intel bought into the company. My initial research showed strong potential, and I thought that I was getting in on "the ground floor". While I recognized that it would take several years for the Intel relationship to really pay off, (not until the Merced time frame), I thought that other investors would soon realize PTEC's potential, and in due time the stock would move "North" of 30.
As PTEC moved up I was convinced that I had made a good investment and regretted that I had not bought more shares. However, as we all know, Phoenix's cost for R & D, to meet Intel's needs, escalated in the ensuing years, In my opinion, these ever increasing costs for R & D distorted PTEC's earnings. Certainly, Intel's decision to delay Merced to year 2000, didn't help either. However, as the stock price of PTEC went down I continued to accumulate shares. I spoke with the company frequently, attended their analyst's presentations to WS and was convinced that few portfolio managers were capable of understanding the Phoenix's story.
Unlike some on this thread, I found management to be very focused and most sincere in their strong desire to return value to their stock holders. Although, they did everything that they said they would do, they didn't produce earnings. But I believed this would come over time.
In recent months I have continued to increase my position in PTEC. My most recent purchase occurred just this morning when I bought more shares at 8. Frequently, like today, I would post my points of purchase. Yes, there were times that I would sell shares for short term gains, but on net my holdings in PTEC continues to expand.
Today, I hold a substantial stake in PTEC. My average purchase price is slightly above management's recent purchase of 9 3/8 on the open market, (I really loaded up a couple of months ago when the stock was below 6). But I feel now our time is near. When I first started buying PTEC I never thought that I would get the opportunity to buy shares at such a low price. Each time that I would reevaluate my decision to own PTEC, I would come to the same conclusion, that while the stock price was down, the company was in a better position then when I had bought shares the last time.
Now, I can't say that there have not been times that I have regretted
not buying alternative investments. Such was the case a month ago when Arrowhead posted on this thread his recommendation to buy SKYM at 3 1/2. Instead I bought more PTEC at 5 1/2. On Monday, of this week, SKYM hit 49 and change, a 1500 % return for the month. However, my style is more that of a long term investor, and I am content with the 50 % return for the month which I got on PTEC.
So Amy, the bottom line here is that I can't tell you what to do. I have only attempted to relate what I have done. However, as I read your post,
"I hold a soft spot for it, if anything, because it was a stock my father believed in until he died 4 years ago."
which I recognized was written from your heart, I thought how would I feel if PTEC went to 40 and I had sold at 7 and never got back in. For me the thought of missing out on the upside, when PTEC is finally nearing WS recognition, was much greater than any potential loss, as PTEC's price hovers near its book value.
Amy I wish the best of luck to you in whatever you decide.
And to all my friends here on this thread, I send you my sincerest wishes for a very Happy and prosperous New Year.
Jules |
