PERI
Brought some PERI here today at $10.84 for a trade. As one knows I stood away from it because I was worried about the MSFT deal, obviously the bad news of clarity has hammered the stock price. But here is what I like.
1) Stock is so oversold it is due for a bounce, yes the stock has a RSI of 13. Yes 13 is one of the lowest RSI’s I have seen.
2) Stock is dirt cheap with its new reality. Truth be told they are $1.50-1.70 non GAAP earner based on the new guidance. I think they are worthy of 5 PE ex cash. thing is if you take the $9.36 cash away the stock trade at just a PE of 1 ex cash. I mean I get this should not trade at a high pe, but it should do better than that.
3) PERI announced a increased stock buyback hopefully they are starting to put it too good use by reducing share count which will be accretive to earnings, especially at these levels.
Conclusion: Not saying here for the long run, just think the stock is too oversold to ignore, and will make a good trade, plus even with the bad news the stock is just too cheap at current levels. Time will tell. All is just my opinion, and I could always be wrong though.
