Statistically speaking, the vast majority of stocks trading below $5 will go to $0. I have seen very few stocks get out of that black hole once they get sucked in.
Hi Dovbgood, I don’t want to jinx our little stock, but it looks as if you have one at least to add to your list of survivors. Up 60% from $3.65 to $5.84 in seven trading days.
I hope that some others on the board besides me took advantage of that strange opportunity.
Saul
Saul: I hope that some others on the board besides me took advantage of that strange opportunity.
I did!
I was very hesitant at first, but when someone on the board found out the warrant-discount thing I bought a little bit at $3,90 and a bit more at $5,10 two days later, as it was clear that there was a kind of market price manipulation.
Thank you very much for your notice of the opportunity and for this amazing board!
Maria
I didn’t get the bottom but liked the outside reversal day to get in at 4.35, the day before the announced buyback. I think that someone knew that was coming. 34% in a week certainly was nice. I would not have know n about PN but for this board. Thanks.
Rob
I nibbled, and am up about 37% with it now about 0.5% of my portfolio.
Now the question becomes is it a keeper? That will require more thought, and reading.
I took a bite at $4.46, and then another bite at $5.26.
It is now about 1.0% of my portfolio.
I’m sure it’s partly a case of sour grapes since I didn’t bite on PN, but I can’t get rid of a bit of a queasy feeling in my stomach with this “market manipulation” of PN.
Something is not right with this company if they resort to such tactics; And I feel a bit betrayed this forum some how…; the jubilation is, well, icky.
Tell me why I’m wrong to feel that way…or elaborate on the actual mission of this forum.
Do we know that PN is the only company that does this?
I ask this because it is a micro cap, and so perhaps this happens with other companies but there are so many shares outstanding that it is not as noticeable(?)
Just wondering…I am not yet prepared to say that what happened with PN is illegal or criminal.
Statistically speaking, the vast majority of stocks trading below $5 will go to $0. I have seen very few stocks get out of that black hole once they get sucked in.
Hi Dovbgood, I don’t want to jinx our little stock, but it looks as if you have one at least to add to your list of survivors. Up 60% from $3.65 to $5.84 in seven trading days.
Ha… When I wrote the first statement above I knew that if PN climbs out of the hold, somebody was gonna rub it in my face… 
No problem. My statement still stands as it is a statistical fact. Weight Watchers (WTW) have recently skyrocketed from $4 to $24 when Oprah Winfrey took a 10% stake at the company. These are the exceptions to the rule.
If you make a habit out of playing with sub-$5 stocks, you will get burnt.
And I feel a bit betrayed this forum some how…; the jubilation is, well, icky.
Tell me why I’m wrong to feel that way…or elaborate on the actual mission of this forum.
FoolDadu- Its a fair question. The quick large returns and the fact it is a microcap make it seem like a speculative stock pick, but I think you need to re-read the context of how it was brought to this board.
http://discussion.fool.com/do-you-want-to-be-a-patriot-32064407…
It was exactly the philosophy of investing that this board describes that made it a candidate for consideration. Celebration of exactly what we are here for, big returns on our investments, is a good thing. Those kind of returns are extraordinary. You probably wouldn’t have said that if people were instead complaining about large losses.
PN may very well be a company that is just starting to grow bigger that is unnoticed and in my opinion and the CEO’s opinion, currently undervalued. As to whether it is a keeper, only the company performance results will tell us. I don’t think any of us are interested in another BOFI experience.
I ask this because it is a micro cap, and so perhaps this happens with other companies but there are so many shares outstanding that it is not as noticeable(?)
That’s a good question. If American companies do this all the time and there is enough of them, why isn’t this a cornerstone strategy to pursue on a constant basis?
Ant
In at 4.22 so up 38%.
$6 will be an area of resistance - it already bounced off this line on Friday and was a trading range for January and February. If it can clear the $6-$8 range then $13 would be the next target which was where it was on 11th Dec before the fall from $13 to $7 on the 14th.
$13 would also represent fair value. Average price targets are at $10 but a recent upper target has been set at $20!
Ant
Hi Fool Dadu,
I have to agree with F1Fun. I got into this stock after he recommended it to the board. I got into it because it’s annual revenues had gone (in millions):
56
103
210
Those are pretty amazing numbers. And its adjusted earnings had gone
(32)
16
78
Which are even more amazing. And its operating cash flow went from $4.5 million in 2014 to $37.1 million in 2015.
Finally, the price had dropped from the $13 to $19 range down to $6. The reason, as far as we could tell, was because the CEO had offered to sell some of his 45% in the company in a secondary, only a year after the IPO (he withdrew the offer), and there were worries because of related party transactions (which are fast being reduced).
I bought shares at $5.80, which was already a PE under 10, and I thought a bargain for a company growing like that, microcap or not.
Then when the market manipulation hit, bringing the price down to the ridiculous prices of $4.40 to $3.65, I wrote the article about the crazy opportunity.
Some people have just implied in the last few posts that the company or insiders were manipulating the price of the stock to bring it down.
Something is not right with this company if they resort to such tactics…etc.
ON THE CONTRARY, my understanding is that it was done by outsiders who held warrants to buy and wanted to exercise them at the cheapest possible price. (It could possibly (probably?) have been the brokerage houses that handled the IPO and thus received the warrants in payment, but this is just a guess). This was a manipulation AGAINST the company and the CEO, who is the biggest stockholder and had the most to lose. When the company finally realized what was happening, they stopped it by starting an immediate stock buyback.
Little companies can get ripped off like that. That doesn’t change anything about the fundamentals of the company. This is still a company with a successful niche and which is growing very fast, at a current PE of 7.5. I wouldn’t invest all the family jewels in it, but for a small speculative investment it sure looks like a good buy to my very un-expert eye.
Best,
Saul
Thank you for taking time out to write out a clarifying explanation, Saul. I had not correctly understood that the warrant business was not from within the company.
I wish I had the experience and wisdom that you and others on this forum seem to have. Lots to learn on my end!
Saul,
Thank you for sharing your simple logic for purchasing a small amount of PN.
It isn’t often we get an opportunity to receive a 35% uptick in just a week and a half.
In hindsight it seemed a no brainer gift of opportunity. However, putting our hard earned cash into a tiny bank whose price had tanked so precipitously takes a lot of courage.
Thanks for giving us all the heads up to grab a few bucks…if we can “screw up our courage to the sticking point…” William Shakespeare
Jim
I have to agree with F1Fun. I got into this stock after he recommended it to the board. I got into it because it’s annual revenues had gone (in millions):
56
103
210
I agree the revenue has been impressive but I took a pass because their debt has skyrocketed just as quickly.
4.7
45
115
This looks beautiful when everything is going well but if something happens then it is a house of cards. I don’t understand the business well enough to know how safe it is.
I agree the revenue has been impressive but I took a pass because their debt has skyrocketed just as quickly.
Hi Ethan, I agree that that’s certainly a reason to be cautious.
Saul
Thanks Saul for this rec, I bought about 1% at $4 and am up nicely.
As always, you are very much appreciated for sharing your investing skills with all of us.
Justin
I was getting a bit worried when the price action stalled yesterday but today took out $6.50. $7.10 and $8.20 appear to be the next resistance levels then nothing till past $12. If it can manage to clear this current zone quickly then it will be a lot more convincing. The slower the progress the more at risk the rise looks of stalling to me.
Cheers
Ant
As you can see PN took out the 50dma and the next resistance is at the top bollinger band. Once through that 12 looks to be in the cards. Fingers crossed. If the dollar behaves maybe Mr Market will continue up, though we do see to be at the top of the S&P range.
http://stockcharts.com/h-sc/ui
Rob