AI
Thursday, March 15, 2012 9:37:45 AM
You bring up a good point, jal ... namely that the reason we buy stocks is on the assumption that they'll appreciate in value. You're absolutely right that fundamentals don't mean squat if they don't translate into returns of share price.
I'd be lying if I said I knew why we're trading so low. I have guesses, but guesses aren't very objective.
I've mentioned before that getting the right answer often involves asking the right question. Usually one question leads to another, deeper, more fundamental, more revealing question(s). The primary question seemed to be "If we're so awesome, why are we trading so low?" My first step is to check fundamentals. Fundamentals look OK, so I ask what else might be influencing the SP.
My second step is to see what other people are saying. So I do some Google searches, check some blogs, and what do I hear? Nothing. It's an extremely unreliable answer, I will admit, but I honestly think that we're trading so low because no one knows we exist. Even E*Trade has outdated earnings data on us (although they have up-to-date data on most other pages and list a trailing 12 month PE ratio of 2.74).
Your argument about missing projections is rational, but I would argue that projections aren't as important as you're making them. Personally, I'm more disappointed that PTQ has missed projections than I am upset or encouraged to sell by such misses. We need at least two points to draw a line and make a prediction. Using only PTQ data, we're missing that second data point to confirm or reject our assertion (that missed projections are the reason we're trading so low). It requires some homework, but if you wanted to confirm your hypothesis, take a look towards the bottom of the iBox, at companies similar to PTQ. Check to see if missing projections correlates with share price in otherwise profitable companies. I'm currently too busy to do it myself, but if you really want to know, that's how I'd go about doing it.
We exist, E*Trade, we really do!
I'd be lying if I said I knew why we're trading so low. I have guesses, but guesses aren't very objective.
I've mentioned before that getting the right answer often involves asking the right question. Usually one question leads to another, deeper, more fundamental, more revealing question(s). The primary question seemed to be "If we're so awesome, why are we trading so low?" My first step is to check fundamentals. Fundamentals look OK, so I ask what else might be influencing the SP.
My second step is to see what other people are saying. So I do some Google searches, check some blogs, and what do I hear? Nothing. It's an extremely unreliable answer, I will admit, but I honestly think that we're trading so low because no one knows we exist. Even E*Trade has outdated earnings data on us (although they have up-to-date data on most other pages and list a trailing 12 month PE ratio of 2.74).
Your argument about missing projections is rational, but I would argue that projections aren't as important as you're making them. Personally, I'm more disappointed that PTQ has missed projections than I am upset or encouraged to sell by such misses. We need at least two points to draw a line and make a prediction. Using only PTQ data, we're missing that second data point to confirm or reject our assertion (that missed projections are the reason we're trading so low). It requires some homework, but if you wanted to confirm your hypothesis, take a look towards the bottom of the iBox, at companies similar to PTQ. Check to see if missing projections correlates with share price in otherwise profitable companies. I'm currently too busy to do it myself, but if you really want to know, that's how I'd go about doing it.
We exist, E*Trade, we really do!
"I would rather be exposed to the inconveniences attending too much liberty than to those attending too small a degree of it." -- Thomas Jefferson
Discover What Traders Are Watching
Explore small cap ideas before they hit the headlines.
