They have a lot of cash which is both good and bad. It makes a buyout very attractive for the buyer but then again having that much cash may prevent a sale because that cash was set aside for just this kind of event, keep them afloat in hard times. Also that cash might help insiders take the company private perhaps, good for them, bad for you.
I opened a small position in ALLT when it got crushed and I exited PKT and suggested on this board that it might be a good move. Currently I still think ALLT has more potential short term than PKT, they seem to be executing at a higher level. Perhaps it's still not too late to make the move and return to PKT at a later date after some profit has been booked with ALLT, if you still like this space.
Desperate men do desperate things, they're on their way out and they are trying to delay as long as possible. It looks like we are fortunate to have Wise aboard to try to turn things around.
Sorry Peter but I also agree with pk with the share price in the toilet nobody is going to step up with the kinds of premiums being suggested here. If the demand for the technology was that great right now, we wouldn't be in the position we are in. Any buyer if there is one is likely want to scoop up a bargain. Sadly your being wrong about this stock continues.
pk with you they were conversing with a minnow and with Chez a whale, big difference. He probably spoke with decision maker and you a clerk.
photon, understand your dilemma and it's impossible to know the future, PKT could just bumble along for years then again a few nice deals could move it a lot higher. Given the shorts are traders it makes sense to me they would want to profit in both directions IF they saw upside from here. Certainly some institutions still do, lets watch those as we see short coverage continue to fall.
I would rather have them go long and do as good a job in that direction as they did on the way down.
We may be seeing continued covering by shorts rather than accumulation. Once they've covered maybe we will see them move the price up so they profit again on the long side.
This is the same mantra that attracted me to first buy this stock nearly ten years ago and fortunately I made a great deal of money on that belief. However that potential has never been realized and is unlikely to do so in the future. In my opinion Raju's short sighted greed has destroyed any credibility with institutions as well as realization that he is basically an engineer that might have great insights into technology but not the business skills to fully exploit it. Ultimately the company will be sold and the only benificiary will be Raju, the structure is in place to ensure it. Those who ignored my warnings three years ago and had large positions have by now deeply regretted it. Nimble traders might pick up a few points on the ups and downs of the market but this no buy and hold investment for the long term.
Wedge your apology in my opinion is unnecessary but much appreciated. One is supposed to buy when the blood is running in the streets, looks like a vein has been opened to me. Bought a small position at the close but will remain cautious going forward. Opened a small position in ALLT too and again will stay cautious. Cheers.
I for one don't believe we'll see the company buying back stock.
PKT learned from his call that the large institutional investors will not push for this kind of action, they will want that cash in the bank. Of course PKT represents only a small holding in a large portfolio for them not their entire life savings so they can afford to hold for a very long time to reap profits or break even unless they sell at a loss for year end tax reasons. If you own it as always you're on your own there won't be anyone riding into rescue you. Agree there is a possibility of a great first quarter next year but past history wold suggest there's no guarantee.Good luck!
My comment goes back a few years when the stock was trading in the 20s and the short position had hugely increased and was the subject of considerable discussion. Despite protestations and disbelief, the shorts were dead right. Never ignore that warning.
The shorts ALWAYS do their homework more thoroughly than the longs, do not ever ignore a huge short position or let your emotions or greed overcome the warning you have been given.