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mjkiii

01/17/12 5:52 PM

#12355 RE: badge792 #12353

Badge792, this is my understanding and experience.

1. The PTQMF is very thinly traded and makes volatile moves on small volumes. Sometime down a nickle on just 200 shares. I believe that some of the small traders are invested very short term and want the free PDI shares and will dump their PTQ shares right after the record date. It would not take too much to drop the price of PTQMF.

2. PTQMF shares are bought now for two reasons: (1) Most important, the stock is extremely undervalued by any metric. (2) Some traders as mentioned above want those PDI shares as the company has great long term potential and may also go out much higher in the IPO. Also, some large shareholders are putting a little extra money in PTQ pre-spin out and may unload those after the record date.

3. If PTQ price does go down I believe it will be very short lived, especially since PTQ's numbers will look very good going forward. More production, higher prices, and no burden from PDI.

I have observed other spin outs and talked with those whom I believe understand the market and the company. No such thing as "true fact" when speculating on the future movements of a SP, particularly short term. Caveat Emptor! I am famous for not being able to predict the short term movements. However, if your horizon is a couple of years, I would buy every share I could at these prices without regard to PDI's possible affect on the share price short term. Good Luck!
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acanuck

01/17/12 8:27 PM

#12356 RE: badge792 #12353

PTQ will divest part of its assets by spinning out PDI. Share price could potentially reflect that.
You have to realize that Pdi could be worth nearly as much as the current PTQ shareprice with the right contracts. If you wait until the spinout is complete to buy PTQ shares, you don't get your free PDI shares. Buy before the record date or you miss the bonus!