With over $400 million in sales and a Price/Sales ratio of 0.1, PFSW:NASDAQ ($1.10) IS THE MOST UNDERVALUED INTERNET STOCK BY EVERY MEASURE.
PFSW has all the ingredients to be the next Internet multi bagger like MAMA or ZVUE:
1)HUGE DISCOUNT TO SECTOR: Trades at a HUGE discount to other Internet stocks. PFSW has a Price/Sales ratio of 0.14 compared to an Industry average of 1.76.
2) VALUATION: If PFSW ACHIEVES "TYPICAL" VALUATION OF 12 X EBITDA IT WILL BE A $4 STOCK. PFSW earned $3 MM EBITDA last quarter before one time charges and should conservatively earn $15 MM annually EBITDA going forward.
3) ECOST BENEFITING FROM BOOMING ONLINE SALES: ONLINE SALES ARE FORECAST TO GROW 25% THIS HOLIDAY SEASON. Amazon.com and other online retailers have announced that the 2006 holiday season was the best ever.
4) TURNING PROFITABLE IN Q4 2006: PFSW is on pace to be SOLIDLY PROFITABLE in Q4 2006, which is by far its STRONGEST quarter.
5) EACH of PFSW 2 divisions, Business-Ecommerce consulting and its ECOST online subsidiary, are worth more than PFSW current $60 MM market cap. Prior to being aquired by PFSW ECOST HAD A $300 MILLION MARKET CAP AT ONE POINT!!
6) PFSW's bottom line results will show SUBSTANTIAL improvement going forward- PFSW cost base will be SUBSTANTIALLY lower going forward as it has slashed overhead and completed the integration of its ECOST aquisition.
7) Insiders have purchased Over 170,000 shares in last 3 months.
8) PFSW will be a strong benificiary of the "January Effect" which is strongest for undervalued small cap stocks.
PFSW has now turned the corner to sustained profitability and exponential growth by leveraging the power of the Internet. Internet stocks that have achieved sustained positive cash flow and earnings have been the hottest sector (ASKJ:NASDAQ rose from $1 to $55 after attaining positive cash flow in 2002). 3 Month Chart