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PCTEL, Inc. Message Board

  • commandor58 commandor58 Mar 29, 2013 11:27 AM Flag

    PCTI-revisited

    Going back to last July, I became extremely bullish as I though the TelworX deal would add $.08-$.10/share EPS for 2013 and PC Secure, with its security software for android based wireless devices, could have huge upside. 6-8 months later, both are a bust-TelworX will not contribute profit in 2013 and PC secure is not proving to be commercially viable. However, I give mgt credit, they took a shot-not all business ventures are successful. All in all, the costs were about $1.00/share in cash.

    For 2013, ostensibly, with all the bad news out, the "core" business is still a good business with scanners, antennas and services all expected to grow over 2012. The balance sheet is still intact with $3.00 cash/share, net/net of $4/share with "core" profit prospects of $.42-$.46/share. At $7, the stock is still cheap. However, the upside instead of being in the mid teens is closer to $10. Because of the very good balance sheet and the attractive "core" businesses, the stock is fair game for an LBO or buyout by a 3rd party.

    I'm not a buyer of more, unless the stock gets closer to $6, nor am I a seller, as the dividend, stock buyback and the attractiveness of the core business are worth holding on to as I expect PCTI will not be a public company at the end of the year. Mgt has done a good job mitigating the damage of TelworX and should PCTI still be public in 2014, TelworX will contribute to profit then.

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PCTI
7.46-0.04(-0.53%)Apr 24 4:00 PMEDT