Bernard,
I thought the S3 said that the limit for shares of the common to be issued was about 8,700,000 or about $1.75 share which would be a floor; this is related to the Nasdaq rule about issuing no more than 19.9% of the shares outstanding. Unfortunately, the company wants to do something that could potentially lift this restriction, I think they said.
All the readers on this board should thank you for bringing up this subject as it is far more germane than most of the rehashed news reports and cheerleading/bitching. However, you can't escape the fact that since you first posted on this subject in December the stock price has doubled, and in fact in late January had even gone up fourfold. Why do you think that happened?
At this point, having done a nice job of reading the S3 and thinking about it, you should call the company. You know enough to ask the right questions. What does the company say about the doomsday scenerio you predict? The SEC filings certainly detail a lot of risks, but that's their legal responsibility to do so. Every money manager that has invested in PCMS has also read it, and the price, instead of tanking, has gone up. Unless you believe that you are right and Wall Street is wrong (hmm...) there is probably more to the story than you know, and calling the company might resolve your questions. If you call, try to speak with somebody higher up than the IR hack.
I have no position in PCMS now and I am not inclined to invest in it for the long-term. But I have traded it with success since December, usually going long. I agree with you insofar as the company's prospects are iffy at best; however, the evidence is mixed as to whether the preferred is this great menace you claim it to be. |
