Had an incredibly wild ride with PERLF today. It up about 50% since contest began, but really started out big today. Yesterday it hit a 52 week high, 2nd day in a row, on 9x avg volume. Avg vol has been going up sharply - last summer it was about 10k, now 21K and climbing daily. Today it opened up huge - from 3 1/16 close 3 29/32 in 1st 1/2 hour on 3x avg vol. Ended up befow the close yesterday (but the ending ask was higher), but total vol was 475k. Thats a lot the last 2 days considering the float is 2.9m Not too bad - approx 100% up in the last year, yet still with a PE of 10.8, price and a great projected growth rate (.31 this year, .45 next). No news associated with it (yet) Very low price/book/share, very good cash/share margins improving each qtr.
biz.yahoo.com
cbs.marketwatch.com
Market overreacted before. They were a niche company in AS400 communication controllers, which was profitable, but not a growing market. They did a lot of R&D funded by cash and developed a line of RAS comm boards that they've continued to enhance, and now a re moveing features from that area into their AS400 products, as increasingly IS installations have diverse comm protocol needs. Had several good qtrs with solid EPS upward surprises and a lot of good releases, but market ignored a long time. Some days last summer there were no trades. No more.
The new line has done well and contuinues to gain market share.
Other than biotechs, I'm a value plus growth investor. Read O-shaugnessey's "What works on Wall Street and was impressed with his research (identifying what characteristics translated in to goo or bad returns and consistance going back 50 years, including proce book, EPS growth, PE...)
He found the best results were companies that had good FA rations (low P/book and Sales) high ROA & ROE, coupled with a growth rate exceeding the PE (This is from memory but I believe an accurate synopsis)
Guess I'm kinda bullish on this one, but then I do have a soft spot for 1 year doubles ;) Scott |
