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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: MikeS97707 who wrote (50565)1/15/2013 2:11:55 PM
From: geoffrey Wren  Read Replies (1) | Respond to of 78702
 
PFHO looks interesting.

The positive: On a very significant growth spurt. On the bare numbers, looks like a great value.

The possible negatives:

Thinly traded with large spreads. I get into this type of stock often enough, but it takes patience.
Possible scam? I wonder this for any new quick growing company with a business model that is hard to figure. From a quick look, it seems that the numbers are genuine though, and it is in industry where it would be hard to fake the viability of an enterprise.
Regulatory changes. It is in California which is always tinkering with Workman's Compensation (PFHO seems to do a lot of business in that field). Also, maybe Obamacare is about to change things.
Customer turnover could work against them. It is possible. Lately things have been good for them, but it is a difficult market, and they could have down quarters.
No web page for the business?

Overall the revenue and income growth rate is impressive meaning they can deliver services that are in demand, and this is probably worth a small stake as a speculative company.