Econ- WLDN & LAKE & PYDS
WLDN in my opinion has problems. I don't usually base this assumption on technicals, but with WLDN, the stock action is not rational for sure, nor has it been for some time. My experience over the last 12 years tells me that when a stock doesn't react to positive earnings and guidence for a given qtr by a 15%-20% gain within 7 weeks, there is something wrong. WLDN has done just that for 2 straight qtrs ! In fact the stock has dropped from $18 to $10 over around the last seven months despite what appears to be strong earnings. Many investors think that their business isn't tied in with the oil and gas sector. Well my belief is that either there is something we're not seeing with business with the utilities going forward, or they are in fact somehow very tied in with the oil and gas sector. Either way, I won't touch the stock without some clarity on the poor stock performance, despite solid earnings.
LAKE- Just looked at it tonight. I actually like what I've read. However first, we can't annualize the $.31 April qtr, as there is seasonality. Analysts are predicting around $1 for fiscal 2016. However analysts are also predicting $1 or less for fiscal 2017. Therein lies the rub. Analysts believe there will be no growth in fiscal 2017 over 2016. That is likely why only a PE of around 10 is being given. Not to say the analysts have to be right, but many investors do read analyst earnings estimates going forward, and almost always give higher PEs to stronger growth.
PYDS- can't buy a $.28 pink sheet stock with $30K/day liquidity !. Very risky IMO, regardless of the PE.
