Many think that all PRWT has to do is "survuive", that if they're still in business in 2 years that all the longs will be rewarded. That is just not how the markets work. You don't get rewarded for surviving, people invest their money in a company because they think it's going to flourish. If you had $55 million to invest/buy one company - I meant the entire company, would you buy PRWT? Would that be the most profitable company you could find for $55 million? There is a big difference between cutting losses and growing into a profitable company. In todays buisiness climate, you have to do both at the same time - become more efficient with your money, sell off bad assets, close unprofitable divisions or branches AND grow your revenue lines. PRWT is cranking out under $36 million annually. Banks (in general) work on tight margins - the overhead is high and the spreads are small. How is PRWT going to crank those revenues up toward $70-80 million while they're slow to lend? Maybe they have a plan. Other banks that have turned the corner AND are in their market are taking business from them (note the decrease in deposits as a sign of that). How is PRWT going to undo the damage that has been done to their brand and how are they going to get that business back as well as increase market share? Tough to do. They are not competitive in their rates, they are hard to deal with in regards to business banking (have an off the record conversation with ANY of the business bankers and they'll tell you they feel like thay have their hands tied behind their back) and they don't offer the stability of the larger players. What they do offer is good people and friendly service. That is a big thing but they need to couple that with a great product mix and agressive marketing to do more than survive. Making 2 cents in 2010 doesn't mean they'll make 4 cents the following year. Business just doesn't grow that way. You guys can call this a bash but it's really not. It's a point - PRWT needs to re-tool on the fly. They need to get focused on revenue instead of just surviving. Nobody wants to invest in a company that is just getting by. There are too many other places to put your money. I just bought 3 houses in Marysville, Ca at an average cost of $63k. I owe nothing on them and they generate $950 each in rent per month. I now have an asset likely to go up in value over the next 5 years and am making about 15% as basically a dividend in the mean time. This is what is keeping people from bidding this stock up - too many other/better places to put your money. That doesn't mean that PRWT can't be the turn around story of the later half of this decade - they could be. Thye just aren't doing the things necessary to achieve that. Leadership change would help give them a shot in the arm as well as a new direction. You longs want to make money in this stock? Start banging on the company for a change at the top! It'll likely never happen though because this is THEIR company, not YOUR company.
I love how the people at are the biggest pumpers on this stock use comments like "STFU" and "PI$$ off" lingo to fight back. It shows an utter lack of maturity, integrity, and inteligence.
I agree with eric that I would love to hear some reasons why everyone thinks this stock is going to shoot from .50 to $1, then $2, $3, $4...your reasons are based on blind hope and have nothing to do with any type of technical analysis.
I bought shares in this stock just as i did with a few other regionals as a fun gamble with money i am more than ok losing if it falls through...but the pumpers on here are hilarious...these people pumping this with no rational reasoning (that they post at least) is similar to watching an unemployed man buying lottery tickets...sad.
The reality is that the company is STILL losing money and until they post a profit or at least a breakeven then it is a failing company. I dont care if it is "not as bad as Q1"..a loss is a loss and with regional banks it is all about getting out of the red before they get taken over or FDIC takes them out.
Personally, I think they have done just enough to avoid the FDIC kicking down their door, but that is not a vote of confidence that this company can sustain a profitable model for years to come. I see the daily working activities, focus, and environment of this bank and it is the style of a successful financial institution.
Thanks for your post Eric. I am currently long, however you bring up some very good points that make me question my investment strategy.
As a business owner, if I don't increase the top line, there won't be more money dropping to the bottom line once all of my cuts have been made. If PRWT has made all of their operational cuts to reduce expenses, the only way to increase the share price is to increase top line revenue.
Most of the longs have been calling you a basher, however I find your posts to be intelligent and representative of another perspective.
Enough already Eric. Its trading at 0.50. It will 'survive' and will trade upwards on any news that causes any volume. Just a matter of time. That is how the markets work.
Boy you put a huge effort into a stock that you say you have no interest in. Your personal bitterness towards Premier is clouding your investment judgement.
I have never said I have no interest in the company - just because a person doesn't curently own shares doesn't mean they are not interested in it. As fas as news, didn't they just beat their numbers in the last earnings report? Did that drive the stock up? People (at least most) won't invest in a company just because it's a survuival story. You can keep calling me bitter or whatever you choose but poke a hole in even one of the points I've made with something that is based in fact. Notice I didn't intimate that that were going to not survive - what I said was that you have to do more than survive. People aren't investing in this company right now for one reason; there are better places to put their money.