PFSW:NASDAQ $1.35 10 bagger?
I have posted on PFSW before- the cheapest profitable Internet stock. I have said before, that PFSW operates a PROFITABLE Internet site Ecost, that it aquired in 2005. Ecost at one time had a market cap of $2 Billion. PFSW has turned Ecost around again with a number of innovations.
PFSW has a $50 MM market cap now. A competitor to Ecost, OSTK has a market cap in the Billions and is losing money.
I think PFSW could be the next RICK.
DD:
UPDATED DD With over $400 million in sales and a Price/Sales ratio of 0.13, PFSW:NASDAQ ($1.31) IS THE MOST UNDERVALUED INTERNET STOCK BY EVERY MEASURE.
PFSW has all the ingredients to appreciate 500% from current levels:
1)HUGE DISCOUNT TO SECTOR: Trades at HUGE discount to other Internet stocks. PFSW has a Price/Sales ratio of 0.34 compared to an Industry average of 1.76.
2) Analyst RAISED PFSW PRICE TARGET TO $3.50.
3) VALUATION: IF PFSW ACHIEVES "TYPICAL" VALUATION OF 12 X EBITDA IT WILL BE A $4 STOCK.
PFSW earned $3.4 MM EBITDA last quarter before one time charges and should conservatively earn $15 MM annually EBITDA going forward.
4) ECOST TURNING AROUND TO PROFITABILITY: ECOST was a $20 stock prior to being aquired by PFSW !! ECOST margins and sales are improving dramatically and should be PROFITABLE next quarter.
5) PROFITABILITY: PFSW is now profitable and will post very large profits in Q4 2007, which is by far its STRONGEST quarter.
6) 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!!
7) 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 competete the integration of its ECOST aquisition.
8) Insiders have purchased Over 170,000 shares in last year.
9) Expanded call center capacity by 50% to handle call growth.
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).
PFSW won't be a secret much longer. PFSW has all the ingredients for rapid price appreciation: An internet stock that has turned the corner to sustained positive cash flow.
