PCTI consolidating after its run from under $6 to the $7.50-$7.60 area. If the broader averages turn down, I can see a PCTI pullback to the $6.50 area, but that would be a buying opportunity. For the 4th Q, I'm expecting EPS to be $.15/share or higher on higher sales than the consensus. As a result, consensus estimates will have to be raised for 2013, just as they were after the 3rd Q report.
Thank you, commandor. I'll definitely be a buyer if we see anything near $6.50. Your previously expressed confidence in PCTI is compelling. Fyi, I have replaced the shares I sold late last week and pocketed the difference. I'm going to maintain a core position here but continue to trade some at the margins.
Comments, mostly about European investment intentions, by ADTN today are mildly bullish for PCTI. Europe has been absent from robust CapX for years, but with changes in the regulatory environment that will protect operating company's investment vs being forced to share with competitors, has some ramping up their requests for quotes. ADTN also said VZ had to do some Sandy recovery spending to get their network back up to speed.
I think PCTI did a fair amount of Sandy related business, so expecting $28+ million in revenue and $.15+ EPS for the 4th Q. Normally 1st Q results are quite a bit lower vs the 4th Q, but ADTN's guidance of flat results for the 1st Q, suggest 2013 may start off relatively strong.