This is disgusting how these funds ran the price down to load up on the cheap. How can this be explained to the SEC? and why doesn't the company immediately look into this? I have 10k shares and while I don't have what they have---my shares should be considered just as valuable and important and they are not. Thats a brahc of fiduciary responsibility
I was only talking about yesterday's price action-- a day when the market vaulted 2% higher-- the seller could not exit PRCP stock without taking a price as low as $4.45 per share to get out. It may be manipulated, I'll give you that. But I think you also have to agree the gross margins at PRCP are awful at less than 29% when CGNX is running gross margins of close to 78% and FARO close to 56% in the latest quarter IIRC. Manipulation and gross under management of the company may both be at play and shareholders need a better deal--- a new Board of Directors, an exploration of strategic alternatives, and failing that, a new executive management team. What are the institutional holders waiting for, hopefully not the Annual Shareholders Meeting in November as that is still six long months away. A lot of damage could be done between now and then. BTW the largest holder, Ariel with about 18% of the stock, also holds about 18% of VSR-- yet another company suffering from margin compression and delayed contracts. If you hold 18% of anything you need to be a little more activist in protecting your fundholders interests when the stock collapses and management and the BOD miss the mark over a sustained period of several years.
Dude how much BS can you spew?
This stock is MANIPULATED badly--thats it.
4 out of the top 6 funds in Perceptron ADDED 765,000 shares last quarter or 10% of the company and we know Moab has already loaded hundreds of thousands of more shares. They manipulated the stock price so they could buy cheap. The only thing going on here is ILLEGAL stock manipulation--thats it. And I suspect the company is dead well in on it as well.
ARIEL INVESTMENTS, LLC 03/31/2016 1,704,661 92,988 5.77 8,182
ROYCE & ASSOCIATES LP 03/31/2016 1,168,526 32,646 2.87 5,609
MOAB CAPITAL PARTNERS LLC 03/31/2016 767,098 556,294 263.89 3,682
DIMENSIONAL FUND ADVISORS LP 03/31/2016 697,575 (4,627) (0.66) 3,348
RENAISSANCE TECHNOLOGIES LLC 03/31/2016 508,094 15,594 3.17 2,439
THOMSON HORSTMANN & BRYANT INC 03/31/2016 363,063 (7,233) (1.95) 1,743
VANGUARD GROUP INC 03/31/2016 305,733 65,398 27.21 1,468
Seller obviously hoping market strength would offer liquidity to dump more stock, but there are just are no buyers for the stock at almost any price. It's tainted. The margins are simply not there despite great technology.
Those remaining invested are betting on a takeout. Those selling do not believe it will happen and anticipate the inexorable unwind if it does not. Wellington looks to have thrown in the towel and is exiting as best it can. I think there is about $5 upside and about $5 downside to the stock--nothing in between, JMO.
FARO and CGNX both have tremendous financial flexibility and gobs and gobs of cash to move quickly and flood the available markets w/their products. PRCP is just hanging on, trying to survive, and I mean by their very fingernails. FARO would be smart to gobble up PRCP while they can and merge the CMM and 3-D metrology product lines w/their own. It's a no-brainer.
It's not just margins that are killing, its continuous re activity rather than pro-activity. PRCP can't seem to comprehend a thorough marketing plan that puts their products in as many segments as possible within their own market space. That's where CGNX has them beat hands down. Now, FARO has also grasped this concept and is moving along again at a reasonably steady pace. Those two, combined with some of the new market entrants have placed PRCP in a stranglehold.
in the latest quarter as a comparison. Margin compression and customer delays may have already sealed PRCP's fate. Moab has simply waited to long to act. The pattern of selling all strength in PRCP stock price continues unabated for well over two years. It is one of the longest patterns of underlying distribution I have ever seen for a stock.
Ariel could be facing a total equity wipe out on both PRCP and VSR due to customer delays and margin compression. I don't know why they insist on getting locked up w/15%-20% stakes in these suspect microcap stocks, unless they are playing a VC strategy where they fully expect most of them to fail but more than offset that w/the occasional big winner. Diversifcation reduces risk except when you are buying similar small piles of trash again and again in different industries.
It looks like the stage has been set for escorting the current BOD and exec's to the parking lot. The rhetoric from the latest board meeting and the generalized softball questions lobbed afterwards defined apathy. Combine that with the limited, well choreographed, structured presentation of the current corporate guidance and finance plan further demonstrated shortsightedness and malfeasance of the leadership/executive team (looking only quarter to quarter) because they can't seem to develop a comprehensive strategic plan, turning that over to management for development of tactics for implementation.
Without any decisive action soon, this stock is going to wither away to the point of no return on investment!
What the hell are they waiting for then? The Annual Shareholders' Meeting in November? They have a majority now!
Revenues expanded nearly one million dollars sequentially in the latest quarter and yet the gross margin declined. They are in effect giving away product to survive. FARO and CGNX gross margins run from the high 50s% to high 70s% . The margins embedded in the highly touted backlog and orders for PRCP are, well, highly suspect. How can they be running gross margins nearly 30 to 50 percentage points lower than the competition despite a highly sophisticated state of the art sensor and software product line? That is simply put, nearly insane. A few points to incentivize customers or to reflect lower scale economies ok, but 30 to 50 percentage points lower? The customer is getting the product below net all-in cost. The CMM acquisition is an albatross that will ultimately choke them not save them through diversification. Doesn't matter if your addressable market doubles, triples, or expands a hundred-fold it you are essentially giving away product below net cost.
The institutional holders have waited too long to act, 12-18 months too long. The entire BOD was nearly voted out in November 2014. The impetus and appetite to initiate change was clearly there at that time. Now, any interested buyer is likely going to let this run its course and cherry-pick the pieces that remain, or do nothing and just absorb the market share left behind. FARO still stands to benefit the most.