5% dividend is a good place to be buying. Company will earn 20 cents/share for the year and 2016 will show continued growth. Then there is always the potential for surprises along the way...who knows what Eberwein might have up his sleeve?
Buying at $4.00 and lower...Eberwein has our back at $3.50.
wonder how much lower it will go after the dump this time?
I'm staying away from the biotechs and biopharmas. when I sold the bulk of things raising cash, I decided I would take a step back and go with what I started with 2 years ago - being more cautious and taking less risks, and part of that was absolutely no purchasing biotech or biopharmas...I don't need the ulcers.
well, though DJIA was down, it wasn't exactly the Black Tuesday I envisioned. Bought a couple things in the morning, sold them both at end of day for petty profits. Sell in May right around the corner...I'm becoming impatient, but sticking to the game plan.
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.