friend of mind told me the sum of the parts analysis for PSSI could support a price in the high teens...BUT because some parts are currently considered "damaged goods", a price of $15-16 is reasonable. Hey, who knows...I'm in under $7 and have enough shares that any reasonable price (in the teens) makes sense. Good luck longs.
I was reading Barron's paper this week, and another company -not in the same industry as PSSI- was hurt bad a few days ago, when the revenue was not what the street aniticipated, but still profitable. Its stock(INSO) went(check this out!!!!) from $42 to $12 in a single day. INSO contacted Morgan Stanley to consider a possible sale of the company.
Another stock(IMRS) went down to $8.5 from
$10.50 when it announced(few days back) that instead of having a profitable quarter, they will lose 15 cents per share. However, IMRS did not contact any Wall Street firm to possibly set up the company for sale. The stock recovered since then and today is around $9.83
What is these stories mean? Well, some companies think they can not do better in the short term and to calm investors and insiders, put up the company for sale.
Is this the right conclusion? Any freaking experts out there?