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PFSweb Inc. Message Board

  • flip20023 Nov 29, 2006 10:44 PM Flag

    Reverse Split


    What is this nonsense about a reverse split being a bad thing? Nothing changes. There are less shares with a higher share price. The market cap stays the same. I don't think PFSW will have to do a reverse split anyway. Insiders are buying, the merger integration is almost complete, and the holiday season will help ecost. Also, there were a lot of one time events that hurt last quarters results (fraudulent credit card activity and integration costs). In my opinion PFSW is definitely a buy at this price. I'm not trying to pump but you should check out MCZ also.

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    • Well, you see, when a company has preformed as poorly as PFSW has, and the company is on the verge of being delisted unless it the stock price trades above $2.00 a share, then the reverse split is a bad thing.

      Sure the market cap does not change and no one is diluted as shareholders of a certain % of the company...but any company that has to go through a reverse split is usually "broken" in some way...thats not positive.

      What makes you think PFSW will not have to do a reverse split?

      You are also buying MCZ??? You like low gross margin companies that are loosing $$. Do you see some sort of event that would trigger a turn around for MCZ? Personally, I can not see a good reason to buy MCZ excpet that 3 new consoles have come out from the big 3 gaming companies which may lead to better sales for MCZ.

      • 1 Reply to andrewanka
      • You guys still don't get it do you? In the game of investing, only the long term matters. Trading equity can get you superior returns over the long run only if you manage to work the information curve. That's what guys like SEI do. They have superior access to analysts who give them the heads up before making any changes. Otherwise, it really is a matter of luck.

        As for losses on my PFSW investment, it will be difficult to make money as my average costs is between $3-3.10 a share. But thanks for your concern.

        I am no hedge fund manager but have been an investor for the last 30 years, averaging a little over 20% a year. My knowledge of the market comes from exposure and reading the news. It's amazing how knowledgeable you become when you read the WSJ closely for 30 years. You do the math. Starting with $15,000 in 1974, that sort of returns would give me over $3,000,000 today. And 1974 wasn't that far back.

        The reason I don't trade or allow short term fluctuations to upset me is because it's only the long term gains that matter. If you have been in business or worked at a business before, you should understand that things don't change that quickly. What's more, it's expensive to trade. You guys are just making your broker rich. You can take my word for it. Then there are taxes. If don't sell, you get to defer the tax paid which further compounds your gains.

        Get the long term trend right, and you'll make moeny. For PFSW it is up. We should expect 20-30% annual gains for the next 3-5 years for PFSW. That's going to be far more than most other large cap companies in the S&P 500. But if you try to predict when it will happen, in general, you'll find yourself poorer as a result.

        Like I said before, when you trade, you take from them, they take from you, only the broker really wins.

        I don't plan to return to the board until Q4 results are released.

        Here is some advice if you care for any. If you want to make money, stop spamming this board with graffiti and start spending your time uncovering opportunity. You guys spend so much time doing this I wonder why you won't do your own research and act like real pros. Investing really takes on two dimensions - time and money. By wasting your time on this board, you are really squandering your opportunity to make money. Also, by allowing others with differing view points to say their piece, you might pick up on things if your mind is open enough.

        Again all the best. Try not to let the past occlude the future.

        The Alchymist
        The philosopher's stone,
        is good judgement,
        and the magic of compounding!

    • i believe that it will reverse split as 20:1 next year.

    • all_your_ignorance_in_one_post all_your_ignorance_in_one_post Nov 30, 2006 8:00 PM Flag

      Hmm, I see the voids-oids have again taken to creating additional Ids to pump the stock.

      "What is this nonsense about a reverse split being a bad thing? Nothing changes. There are less shares with a higher share price. The market cap stays the same"

      How can we break this to you? How about this: A reverse split is in 99.9% of the cases the beginning of the end. Now I know that there is indeed a handful of cheerleading assholes who will point to the one or two successful cases where a reverse split has occured( Lord knows rigtcall is just aching to log in to his other alias!) - but that idiotic ranter and his pumping aside - lets stick to reality - the reality is that earnings have not served to get the stock higher. ( You do understand that means, no?).

      Facing delisting( and the eventual listing on the dreaded Denver penny stock exchange - and it is coming for this POS), a company reverse splits the common.

      As with selling assets, this move is tantamount to burning the furniture to heat the house. ( You still with me?)

      Now don't you wish you had read the newspaper for 30 years and made millions? Lol.

      On the plus side you did get another cretin to agree with you which serves to demonstrate that you are in fact "not alone" in your ocean of ignorance.

    • It's true and I agree with you !

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