Prism Software Corp. (PSWR)

[dukelasilvertbird]

Reposting this DD for New Eyes

this dd worth reposting:
Posted by: tvmetguy Date: Friday, January 22, 2010 6:56:55 AM
In reply to: None Post # of 1215
PSWR-Fair Value-Link

Maybe sticky my DD? CEO is David Ayres, EMAIL: [e-mail] PHONE: [phone] O/S is 141 mil, float is 45 mil, insiders own 96 mil, or 66.6% (majority!)

1) Peerless, a NasDaq company tried to buy PSWR 2 years ago for 1.75 mil in cash and 1.5 mil in stock, plus incentives over 3 years for a total of 3.25 mil + incentives Link below:

http://www.peerless.com/press/PRLS-PRISM_Asset_Aquisition_PR-2-27-08f.pdf

2) Peerless notes that PSWR is in a 1 billion dollar industry as of 2008, with a growth rate of 25% per year meaning in 2010 it is about a 1.5 bil dollar industry!

3) Consider 3.25 mil + incentives offer in 2008 should be 5 mil offer + incentives in 2010 based on 25% growth

4) However, this offer was before PSWR started working with Konica Minolta, Canon, and now Oce. PSWR also works with Toshiba and Panasonic

5) Obviously, PSWR software is the industry leader in this segment, as they all use it.

6) PSWR licenses their software to these companies for their use in their printing/emailing/copying/faxing BIZHUB machines.

7) PSWR keeps revenue/earnings and info close to the vest because IMO, they do not care what the share price is, they are looking for a buyout, as was indicated in 2008. The buyout fell apart for undisclosed reasons, but I GUARANTEE it is because the PSWR CEO decided they were not getting the best offer yet

8) Rev for PSWR is estimated at 5-10 mil dollars here:

http://www.manta.com/company/mmg5v9s

9) Based on my DD PSWR should have earnings of 2-4 million dollars this year because of the high margins associated with leasing software (remember, they built this stuff years ago with a cost, and are just updating/sending out new versions now for crazy mulah!)

10) If we use 3 mil as an earning for 2010, you get 3/141= .021 EPS, use PE 30 for high growth/spec, get a PPS of .63 Even if you disagree and take half of what I say, this is a .25 cent stock, no brainer.

11) At .25 cents market cap is only about 33 mil, and at .63 cents market cap is about 90 mil, all very reasonable and an easy purchase for Canon or Toshiba or whoever because they are 50 billion dollar companies

12) Remember, PSWR does not give out a lot of info, they are likely waiting on a huge buyout offer, but it may come this year, next year, 5 years from now, who knows, so buy this stock to ride it up here, but hold some for the buyout because all signs point to that

13) Call and Email the CEO, I have, lets hear more!