hello...forget profitability before 2015 if the 10Q and other information is to be believed. PFSW can only be profitable at a certain scale of revenues. The 10Q states they are losing or will have reduced revenues from the top 3 service clients, reduced revenues from Ricoh and reduced revenues from the higher hargin tech service business in 2013. Profitsin 2013 are therefore not going to occur. It will take all of 2014 to build back to scale unless something big comes along on the service side and Ricoh somehow rebounds on the revenue side.
I do agree some form of sale is possible due to this new fund, Special Situations and perhaps others getting active. However, you will notice the newest fund got into PFSW at an average below $3. They would love to simply double their money. This is no longer a home run. No one is going to buy PFSW at a large premium to current prices (meaning $5 plus) since the numbers do not support it. Tangible BV is only $20MM after 2013 gets factored in and mo one is going to pay $40MM over tangible BV for PFSW.
The time to get in was back in the 2's. One can still make money at these levels, but my guess is the low 4's is it on any takeout. Layton and crew let too much time to tick away and now 2013 is a throw away year for financials.
It will all crystallize by sometime in March when PFSW abbounces Q4 (which will be ok but nowhere near what some think here given Carter's domestic fulfillment is gone) and more importantly 2013 guidance. Maybe they can shore it up so it will not sound so bad, but 2013 looks pretty dismal.
Bottom line...very nice to see the new fund, but still wondering what will happen to the share price if PFSW does guide to a dismal 2013. Everyone is just guessing right now. I think it will be very poor. Others not so. We will see.