I am finding it entertaining on the different positions taken on this stock. The view that management is dishonest will be difficult to support since there is an obligation to shareholders but there is also is an obligation to make as much margin as possible that will sustain a benefit to all stakeholders. There will always be questions on what is the best course of action. We as interested investors/traders will simply not have intimate knowledge of the industry and the operations of PFIE. From a fundamental perspective, this co has a great posture. Technically the PPS will be erratic due to low liquidity. This is an opportunity to have some fun with this stock as it matures in the marketplace. I don't like to be a cheerleader here but there is a lot of potential for this stock for the next few years. Institutional investors will be all over this when the risk models show a conservative buy in.
Just have fun watching this stock climb. Yes, it will go up and down in the process.
Yeah, lots of retail investors. I just place an order and it filled with plenty of small lots (not one big lot at all). It took a long time to fill too. Weak hands create opportunity as it should have been known that there was going to be margin compression due the hiring and getting the new facilities up and running. With this low liquidity, it will be volatile. Have fun and play this equity smart. The big boys are not paying attention yet (other than those that bought in on the secondary and are holding).
Decent rev numbers, conservative investment in growth, maintained in line with EPS, good cash/debt situation, but still there is execution to be performed. Don't let the PPS deflate the momentum just yet. There needs to be more confirmation and with the overall direction odds are leaning to the upside. If there was a decent beat on the EPS, there would be better movement. Still very low volume which means those with decent size positions are holding.
There will be trading but patience is key and the next two quarters will be defining.
Definitely a gem on those results. There will be some focus on margin compression, but that is a component of growth. I hate using the word hope with stock picking but I do really hope the institutions have their eye on this budding company.
Very low volume. There seems to be confidence that PFIE is in line with their guidance. A good question would be, is there enough visibility in their growth model to up their guidance. Topics to look for:
Insider ownership - Well below 60% yet?
Continued growth in Canada due to legislation
New sites up and FULLY operational
Increased sales with increases sales personnel
Reoccurring revenue with high margin from maintenance contracts
Sales numbers on new products
Return on investment - How much of the funds raised have they burned through
I am quite bullish on this last quarter but the next two quarters are more defining from my perspective.
I can appreciate your frustration with the PPS but look at it as an accumulation opportunity assuming you are satisfied with the fundamentals.
Consider their situation, a company that is not very liquid and doesn't have the institutional attention necessary to ensure their secondary was going to be successful. There were some backend deals that made sure the additional shares were going to be purchased. Now on the flip side, those institutions that drove a hard deal to get the shares cheap are now sitting on positions where they need a solid performance from PFIE to drive a sound investment.
It really can turn into a religious discussion real quick on what was the best course of action for getting the company public with all the private ownership and thin amount of shares on the market.
PFIE seems to be on target with guidance and I wouldn't be surprised if they were to up their guidance for FY16.
I am interested in how the mgnt is incompetent. There has been YoY growth in a budding market. It seems there may be a focus on the selling of shares by execs that drive the PPS down, but in order for them to be a real public company they have to give up some shares vs adding more float with secondaries. Good problem to have. The focus needs to be on the overall growth and how smoothly that scale occurs. Earnings will bring this vital information forward.
To be honest, if/when revenues get to $80-$100M, look for big boys to join the market which could smell of M&A, but that is way down the road at this point.
$6.50 by summer 2015.
The increasing volume is good. An upward trend is forming. However, let's see how the shorts play this.
I wish I knew Lake Street to be credible. Still good to know PFIE is being recognized.
With the big picture signaling sell off, be careful where you add here. Patience will be tested for sure. There will be some short covering that may seem like a recovery but the shorts are looking to make some descent money with this type of price action. Again, just have fun watching even though it make be difficult with all the red.
Welcome to the price action of a thinly traded stock. I am interested in when the volume averages out at 750K shares.
Check you seat belts as the shorts are going to have some fun with this stock. Typical game of beat it down and cover. Just relax and watch it gyrate. Have confidence in the fundamentals and wait it out. Looking forward to earnings.
This is healthy to shake out the weak. This is the at a interesting technical level. No need to worry since the market sentiment is shaky too.
Depending on ones definition of long term but a year from now PFIE will at or above 6.50 (I predict earlier). There is a buzz in the office with the new hires and excitement of taking the co to the next level. The new offices are open and operating. There is not any debt. There is earnings growth in a sector that is growing exponentially. There is a mission to create a channel for force multiplication. With every sale there is a plan to implement a reoccurring revenue stream with maintenance contracts and an expanding portfolio for a developing market/aftermarket.
Yes, internal ownership is just above 60% and yes you will see management sell to increase float to make the co more public. The stock has low liquidity which will result in major price swings. Patience with the wild ride on the way up is a must. One can trade and make money, I agree. However, the buy and hold is not such a bad thing either. Just have fun with this stock as it will be a ride with measurable risk.