Hello fellow Planvest shareholders, I am new to Silicon Investor and wish to engage in the group analysis of Planvest.
We should not be concerned with the flat earnings during Q3 for two main reasons. First, based on a comparison with last year's quarterly performance, PLV's current quarterly profitability is not
abnormal. The company seems to experience weak profits in Q2 and Q3, but tends to exhibit strong Q1 and Q4 performance. So there might be some type of seasonality at play, further research is required to confirm this.
Second, we should no forget the fact PLV opened a branch in Waterloo, Ontario, so it is fair to expect increased costs for the set up of this operation during Q3. Increased expenses associated with new premises, new staff, computers and etc, were likely incurred during Q3. However, this expansion should promote increased sales and higher profits in the future.
Finally, given low GIC rates, people will likely make RRSP investments in equities, and other traded securities (e.g. bonds and mutual funds). This bodes well for PLV for Q4 sales and profits. I expect PLV will earn about $0.13 to $0.16 per share in Q4, or about $0.38 per share for the year. So guys lets be patient with PLV. |
