Is anyone still in PN? I am wishing now that I had cashed out at $9.50 a few months back when it seemed that that was what many here were doing. I can’t recall ever being in a stock that had an offer to sell and months later no clear message or intent has been conveyed to the shareholders. After the last earnings call I figured there was no way this would ever carry forward through this next earnings report… now I am not so certain.
Stock had been drifting downward and now more recently has been retreating more powerfully.
Anyone ponder to guess at where this may be going?
I’ve learned a good lesson as i got greedy thinking i would end up with greater that 9.50 in a short time… now I sit wishing I could just get 9.50 again to be done with it. Don’t want to anchor though.
I have not invested in PN, although I did 3 times in the CAPS game. One thought I have had in the back of my mind is how difficult the Fed decisions have made financial businesses. Both banks and insurance companies ( and other “float” businesses) have had a difficult time earning in the way they had historically. And investors are assigning lower multiples, which makes sense to me to account for the increased political risk.
Have you read their calls? That might help you decide what to do now.
I am still in PN too and believe the same two scenarios may be happening as Ant. The CEO originally made it sound like the EBIX due diligence was going to wrap up at the end of August. I’m hoping it is the 2nd scenario and they are repeating the market manipulation of price prior to an announcement. If they announce that EBIX is withdrawing their offer it could be dropping much further. No news is not good news in this case.
And F1 in Austin was awesome! Great weather and great track.
I started investing in PN after the announced approach by EBIX. I’m also wondering about the delay of news and the recent, significant drop in PN price.
I tend to doubt that the recent drop is because of a fail of EBIX due diligence. If that conclusion was reached, I think both PN and EBIX would be under real pressure to disclose that to the market – seems like a clearly material fact. And people with that knowledge and trading on it would really be taking on risk of trading on inside information.
Although the PN share price dropped significantly in one day, I keep reminding myself that PN is a lightly traded stock. There have been higher-than-usual trading volumes, but it’s still not that high.
If I were pressed to guess–and hey, it’s fun to speculate–I would guess that they are bargaining pretty hard over the price of the merger and that they just haven’t reached agreement yet. My own reading of the past PN and EBIX announcements is that EBIX has offered a price in the range of $10.50/sh. PN is still largely owned by the CEO, so he has a deep interest in maxing out on this buyout. And given that his company IPO’d at the $13-14 range, it may be hard for him to swallow the $10.50 offer, even though the market seems to suggest that would be a fair price.
I could be totally wrong, but I’m not that worried yet. I am actually thinking of adding more PN. In part that’s because I didn’t just buy PN because of the merger talk and the price differential between where it was trading and the offer price. I think PN is a pretty solid company operating in a good niche (I’ve been following EBIX for longer, so am somewhat familiar with the space). If the merger doesn’t pan out–and absent some new, negative fact coming to light because of the due diligence–I’d be glad to continue holding PN.
I think PN is a pretty solid company operating in a good niche (I’ve been following EBIX for longer, so am somewhat familiar with the space). If the merger doesn’t pan out–and absent some new, negative fact coming to light because of the due diligence–I’d be glad to continue holding PN.
Yeh leaving aside some of the weird insider behavior, I was worried about the underlying performance deteriorating at PN but when I went through the transcripts there seemed to be some substantive rationale for belief in further gains. I would though at the right price be happier owning EBIX but both are insurance fintech disruptors.
Ant
PN has always been a strange one. Growing, seemingly healthy earnings…but the PE stays in the single digits. Then they agreed to sell at a modest premium. I thought that was weird too.
I just don’t get it, and it highlights our vulnerability to information-deficits in tiny companies. It’s why I’ve stopped adding to SUNW and MITK for now.
Well, PN is down to about $5.50 today…I’m really intrigued by this.
I’ve made a little bit of money buying and selling shares of PN twice already; it’s tempting to buy in again, but without knowing what is going on with the Ebix deal, I’m not sure I want to try for a 3rd time.