Replies to post #18 on Primo Water Corporation (PRMW)

[GALGO]

As soon as shorters find out that PRMW is not going any lower, two things are going to be in effect, first people that bought high and had the guts to hold it while the stock was taking a dive, will want to average down to minimize their loses and that will create some buying presure, and second, the smart shorters will cover as soon as they realize they're about to get burned.

[GALGO]

NEWS OUT!!!! TARGET PRICE $ 17.00

This should be a stickie.


MARKET TALK: Primo Water Keeps Falls; Janney Likes Stock
11:49a ET August 11, 2011 (Dow Jones) MARKET TALK: Primo Water Keeps Falls; Janney Likes Stock
11:49 (Dow Jones) Janney remains upbeat on Primo Water (PRMW) despite the water seller's big 2Q miss and dour 3Q view, "particularly" after the recent stock sale by the company and pre-IPO owners. It's "a near-term problem for the stock as it will take a while for management to re-establish credibility." However, "the timing of significant new customer launches always poses a risk to near-term results for a small growth company, and PRMW is no exception. We are comfortable that PRMW's Q2 issues were only a temporary setback." PRMW tumbled 61% Wednesday and are off another 13% today to $4.71; November's IPO price was $12. Janney cuts its fair-value target to $17 from $23. ([e-mail])
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