PSIX has been dropping. After the last earnings it spiked to $66 and has since declined. It’s P/E was in the high 40s. For the March 2015 quarter we saw a q/q earnings decline of 4 cents (24c to 20c) versus the prior year. A large part of their business is related to selling engines that run off of NG at well heads. The US oil and as a result NG production is in decline with the drop in crude oil prices. A big question is how much of PSIX’s business will be affected as a result. The other parts of the business (other engines for forklifts, school buses, etc. is doing well. Then there’s the whole opportunity of the on-road vehicle business which has yet to take off.

The P/E is now sitting at around 31 (down from around 47 recently) and the 1YRPEG is 0.68. Management said on the last earnings call that they expect that their previous revenue forecasts will be met and that this year’s revenue will be loaded toward the 2nd half of the year. I haven’t reopened a position in PSIX but I am watching closely for it to bottom out.


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That’s probably a prudent strategy. I’ve found that when management says they “expect” revenues to be weighted toward second half of the year, they could usually replace that word with the word “hope”.

I still hold a small % of PSIX, but I’ll wait until the business does something to make me want to buy more shares.