To: rdmsqito who wrote (77266 ) 2/20/2000 8:29:00 AM From: Doug Robinson Read Replies (1) | Respond to
PFSW-When stocks are selling at the bid, it usually means that selling is stronger than buying. When they are buying at the ask, that's more positive. With the Nasdaq setting new highs Thursday, PFSW still remained below it's 10, 20 and 30 day moving average. Regardless, I like the company but have concerns regarding the massive number of shares that will be given to current Daisytek (still owns 80% of the company)stockholders. Will that help or hinder the price? For now, I think it's the chief reason the stock hasn't moved upwards. As you know, this distribution to Daisytek stockholders will be a tax free distribution, so they might hold the shares, but I'd expect some selling if the new owners expect share dilution. Over the longer term, they appear to potentially be a fine company. I'm also waiting for a more definitive earnings report. The past report requires one to accept estimated and adjusted figures based on certain assumptions that the company feels comfortable with. They have indicated that the next one will give us some firm numbers. It's not unusual for underwriters like H&Q to reiterate buy ratings when a stock is falling. I would have been happier if they had upgraded their rating to a strong buy, as their current buy rating was issued when the stock was 15% higher than it currently is. H&Q probably saved them from some additional decline in the short term. Good luck with your purchase on Tuesday - I do like the company but am only trading shares in it now. I took a small loss on a core position that I established earlier and won't reestablish any core position until some of my concerns are addressed.
