I left civilization Monday and returned today. At the time, the share price had risen, PBLS management were highly competent directors that had targeted all the right sectors. Sand, gravel and construction for rebuilding New Orleans, oil and gas related products for and energy starved country and refurbished engines and jets for a flight restricted nation. These guys were good.
Today I see the share price has crumbled, the same directors are blatantly dishonest, some shareholders are examining pursuit of a lawsuit, and management should be scrutinized by the SEC for dumping shares during a PR pump. Other invested souls think a huge announcement will come forth Monday and save the day and the share price and all will live happily ever after. Many longs that risked a huge percentage of their personnel assets on this play have gone from staunch supporter to an angry doubter. Some are beating their chests and bragging about their trading acumen by selling prior to the big drop while others claim those who sold are fools that will miss the big announcement and share price appreciation.
It seems we have received some of the long sought after PBLS financial information that has spawned countless posts and over which some posters have become neurotic. The 2006 gross revenue they claim is verified by an SEC attorney for this Pinksheet stock was $178 million below their $206 million estimate, we have $125 million in assets, $8 million in pretax net, a book value of over 7 cents and earnings per share of almost exactly .005. With a paltry PE of five, we are worth .025 and at a 10 PE .05. Using the maximum OS count, our current share prices sits below all of the above at .019 and people are discussing a continuation of the bloodbath come Monday.
The biggest cause of the current outrage is? The OS which was promised to be under 815 million with a goodly portion restricted is now listed by Pinksheets at 1.75 billion with a B. At about a billion more OS shares than many predicted, we have experienced a classic case of the dreaded dilution.
Some here claim this is possibly the third time they have dumped shares to accrue monies and lined they and their friend’s pockets.
WOW.
IMO the reality probably lies somewhere in the middle of this divided camp. They probably did sell all those shares. Based on past history, they are probably buying more companies that will provide optimism for increased earnings. This group of PBLS managers cares about earning themselves a huge annual salary and bonus package. IMO They don’t care about public perception. Again based on past history, they don’t care if shareholders get spooked, sell at a loss, they are looking for “loyalty”. They feel they’ve given everyone a fair offer with the Preferred share swap offer where virtually 100% of shareholders can make a little money. You just have to enlist for five more years of Pebbles on their terms. This episode will cause disillusionment with some very loyal shareholders and a new crop will move in with dreams of dollars per share dancing in their heads. Players and traders, many with a past PBLS history will continue to flip and trade the moves of this “security” and eventually the board will return to normalcy. The release of next quarters financials will again produce optimism and the share price will rise again recreating the same type of optimism we saw last week. It’s all a game and this management group plays it well. They’re no SLJB, they’re not a scam, and they are experienced players. It’s up to penny players to learn how to play the game, with a lot more shares in the float.
This post is an opinion and should not be considered reason to buy or sell any security, or to besmirch, belittle or berate any person, religion, cult, creed, race, sex, political party, company or company representative of any age or appearance.
