PROM
I thought the quarter was pretty good. At first glance I was disappointed, but than I quickly realized there was a 900k non recurring charge in there, plus there was a 1.4 million bad debt expense, which given their level of a/r, I'm gonna guess it was something the auditor asked them to clean up or one client that went bust that they had to write off or a bunch of aged receivable that they need to clean up over the years, but not and issue that is gonna reoccur. if you believe that then we got roughly 6.1 million adjusted ni before taxes, you tax it at the 2017 rate we get .015 you tax it at the 2018 rate you get .018 or so. Now do keep in Mind this is a seasonal company and q4 is generally there strongest quarter. I believe earning will be .07-.10 for PROM in 2018 thanks to more growth and a lower tax rate. I'm up a decent amount on this stock basically purchasing all my shares some as low as .20-.21, and as high as .24 or so. So I may sell some if the stock climbs from here, but at these/lower prices the plan is to sell 0 shares. Even given it's weaker balance sheet and lack of liquidity I give this stock just a 7 multiple times my lowest estimate, I still can make a case for a .50 FV, and as I said I'm probably being conservative on that. So basically I thought the quarter, excellence was hidden by these one time charges. But in reality all is going well here in my opinion. All is just my opinion, and I could always be wrong though.
