looks like we're going to get that relief rally today - and I'm going to be selling into it...extremely concerned about tomorrow...but will be interesting to see if we do get a big drop - maybe 300 to 500 points on DJIA.
I'm not buying.
I'm getting very excited about the entire market falling today. Just been gently nibbling at safe stuff that I sold higher weeks ago. If DJIA closes very negative as it is right now, my crystal ball shows small relief rally on Monday and then a Black Tuesday - couple with "Sell in May" and I am going to be shopping as if it were Xmas!
Eberwein is head of Lone Star Value Management. They are a fund specifically focused on turnarounds and deep value plays. They go into companies that are poorly run, they shake things up, cut costs and overhead, return the company to profitability, and all shareholders win. Eberwein has a very high success record. He received his training working for Soros. I've been involved with 3 Eberwein situations over the past 2 years and all have worked out very well. He is very good at what he does. Considering the investment that was made and that Climaco remains on both boards, my belief is that any involvement by Eberwein/DRAD is on very friendly terms.
hansyklerk - I have no idea what the end game is. However, for Eberwein/DRAD to make the investment in the Tc-99m company is an indication that one way or another they intend to benefit by significantly more than the amount of the investment. I know Eberwein and how he operates. Should PESI shares continue to stagnate, it would not be out of the question for Eberwein to make a large (and continued) investment via share purchase or an offer for all of PESI outright.
again, they cannot do anything right now (or in the past two weeks) because it is the period between end of the quarter and the earnings announcement. when did the price fall below $4?
a buyback is no different (from a legal perspective) from insider buying - it cannot happen in the period between end of quarter and the earnings announcement. as I previously pointed out, bears and shorts do take advantage of these opportunities because there is little the company can do until the earnings are announced.
and so in the mean time, until we know more, I go with trusting management - the management team that has turned this around over the past year, returned the company to profitability, and has consistently been buying shares, even a few weeks ago at $4.50 and $4.60.
I assure you, for the roughly 200,000 shares that traded in the past two weeks since the shares were at $4, it wasn't because of this "doubt".
compare with financial metrics and balance sheet for LTS and then tell us where the shares would be appropriately valued in your view - even with your reduced earnings scenario.
When the shares were trading in the 40 to 60 cent range, you had people playing games...jumping in/out for fractions of a penny. That game has been shut down, as anticipated.
Now, the low liquidity is actually a sign that the shares are in stronger hands - most are not trading, but rather holding. Unfortunately, the result is that for the few who are looking to sell (many of these people who were playing the in/out game for fractions of a penny but are not holding what they never really intended to be holding), there are not a lot of buyers and there has been little promotion of the company/shares to this point to get it on the radar of more investors.
As I pointed out in my prior post, at this moment there's the added issue of being in this dead period between quarter end and the earnings announcement where there's no communication from the company and insiders cannot buy shares - and people who know this company and management know they would be buying lots if they could.
I am taking advantage of it all picking up shares daily and will continue so long as this game is going to be played.
I'm certain that over the next 6 months, management will look to attend some investor conferences and take more actions to boost the visibility of the company/shares. At this time, having seen the turnaround that's taken place over the past year, I'm happy to be buying and just wait this out as the shares are a great value at this time as the company continues to strengthen and post profits.
shares will be above $5 and $6 in the next couple months - you heard that here first.
at this time, officers and directors would be buying all the shares they could, however, because it is a blackout/quiet period between quarter end and the earnings announcement they are restricted from buying shares at this time. this is a typical situation that occurs and is what is taken advantage of during bear/short raids.
for investors who understand the company, and the situation, it is a great opportunity to acquire shares at cheap prices. nothing more than games being played with the shares.
Climaco has already delivered considering DRAD made the $1 million investment in the Tc-99m company. Climaco is also on the DRAD board and I have to believe the investment came about (or at least was facilitated) because he is on both boards.
as far as his consulting agreement, it's not as if he's not doing any work to earn the pay:
●Review the Company’s operations to restructure costs to render the Company more competitive;
●Evaluate all functions, including but not limited to sales, marketing, accounting, operations, and executive management as well as cost structures for each facility;
●Assist in the development of the Company’s strategy opportunity and other initiatives, including but not limited to the development of the Company’s medical isotope technology; and
●Other assignments as determined by the Board.
Notice the third bullet - considering Climaco's background, he is an expert in this area. DRAD made a half-hearted run to buy PDII, where Climaco was also a director (resigned the day DRAD made the offer), but that didn't happen. Should PDII's share price continue sliding, DRAD may make another attempt going straight to shareholders in a hostile takeover attempt. Down the road, there may ultimately be the potential for a threesome here between DRAD, PDII, and PESI with the Tc-99m business. For now, DRAD did go and purchase another company in a similar business to theirs which likely is also a Tc-99m customer.
So, in the bigger scheme of things, I think PESI is getting its money's worth out of Climaco.
hansyklerk, the same way you review the chart, so do the shorts. the same way a long will place a stop-loss order, so too can the short. it happens more often than you would believe. with a stock like PESI, because of the low trading volume, it actually makes their job easier, because we all know how inertia/momentum works, and when shares are moving lower, the odds are in their favor. I personally do not short, however, I understand the logic, and how it would apply in the current situation with PESI.
as far as PESI and the government, we all know the issues and the situation. company turned in a solid quarter with significant increase in revenue and another quarter of profits. if they are able to turn in quarterly profits at the current level of revenues, we know that is a good sign and that the cost cutting has had the desired effect.
with the DRAD investment for Tc-99m, this is simply gravy. PESI itself is a bargain at the current share price. any positive benefit of the Tc-99m process/company is over and above. this makes PESI an exceptional investment at this time - and the traders are oblivious. so, in the short-term, let the share price do what they please - makes no difference and more opportunity.
hansyklerk - you'd be surprised the people who short these days. the same way you have traders happy to get in/out with 10 cents, you have shorts doing exactly the same. shares approach 52 week low, and they arrive on the scene to collect their nickels and dimes.
I will pick up little by little daily as long as they would like to take it lower with "traders" taking their losses and "shorters" looking to capitalize on momentum.
these folks can play their games day to day, but the facts remain that the company is performing better today than at any time in the past 2 years, insiders were just buying shares in December at over $4.20/share and none have sold any shares.
thank you for your wisdom hansyklerk.
a little voice is telling me that you and roboklerk are one in the same.
quite interesting how you both only post on the same boards, at the same time, and have the same language/form to your posts.
again - love seeing your words in print, don't you?
too bad you can't remove this post - huh?
I love when technical "traders" read what their pretty pictures tell them because it has little to do with reality.
company has posted back to back quarters of profits and shares are at 52- week lows. outlook it better than it has been in a very long time and people are looking to sell now. this is actually a very good thing, because it will allow people who are looking to "invest" to acquire more at those "traders" expense.
Your posts are as funny as ever. Clearly you have a need to see your words in print.
Keep it up - as I know you will.