3SOF

Hi David
I see the earnings release is coming out Nov 14 and I was wondering if (considering good news and sell on the news) I should wait to buy after the news?
Are there two other favorites you would suggest buying at this point?

Thanks and Best
GMan

Quote from: la-onda on September 21, 2007, 11:18:11 PM
nice chart action for the weekend

Yep, it will show up on everybody's technical filters, and when they read the turnaround story behind PFSW ... I believe they'll rush to buy.

QuoteHi David
I see the earnings release is coming out Nov 14 and I was wondering if (considering good news and sell on the news) I should wait to buy after the news?

Hi guitarman

As I wrote previously on this thread, just the existing fundamental information should be enough to drive PFSW to around $2, not counting on future expectations. From today until November 14 is a long time, you may end up buying the "sell the news" at $1.80, down from $2

QuoteAre there two other favorites you would suggest buying at this point?

No, not at this time, I feel I like all stocks in the Main in the same manner. You pick two or three from those 11 stocks, good luck

Without any news out PFSW showed we've had a correction, but the trend is up, according to the fundamental change. I especially enjoyed the rise in volume. It looks clear now that PFSW will challenge the recent highs around $1.6.

I'll continue holding PFSW for the long term.

PFSW opened with a gap up so it came down to close the gap. Over-excited morning buyers almost always get disappointed later in the day.

Anyway, the gap was closed, the uptrend should resume now.

Fundamentally everything stands the same, I believe PFSW should be trading at $2 just considering the existing financial information.

I bought some PFSW yesterday, I'm ready for the run up! 

I picked up a bit more at $1.25 last week.  At a minimum I'm looking for a retest of recent highs.

Bound to hear something soon...

From David....

As I read parts of the conference call transcript, I see a press release coming out soon, related to this:

«In last quarter's Conference Call I noted that we signed a letter of intent with a new client that is a major US retailer. And I'm pleased to announce as we anticipated that we've signed the contract and statement of work to provide product fulfillment and customer care services for this company's new online store initiative. However we've agreed with our client not to formally announce the identity of this new client until their site goes live. And currently we're planning to support the launch of this site in the third quarter of 2007, in other words towards the end of this quarter just in time for the 2007 holiday season. This latest addition to our growing portfolio of premiere direct to consumer clients helps confirm the validity of our goal to strengthen our presence in this online retail space.»

Kent

it sure would be nice I have been waiting on something to wake up my portfolio for a while.
 

Got in during the gap!
Looked like the thing to do and I'm already up.
Thanks David
Good Luck All
Gman

I thought you guys were holding PFSW since around $1 like I am, but $1.2 - $1.4 seems fine too.

That news from the retailer should be coming out any day now, but it isn't all that relevant in terms of the long term fundamentals. It should only be nice because it could bring some more publicity to PFSW's turnaround story.

Here are some more words from the latest conference call:

«Before we go for questions I just want to reiterate something I said in the opening remarks. The improvements that we've made in the eCOST business and the overall strength of our Services business enabled us to achieve profitability in the second quarter but the real excitement in the story lies in the momentum we're seeing in our business and the positive opportunities available to operate these businesses in a way that will extract the most value for our shareholders. When we conceived the merger, we understood that our know how and world-class infrastructure would give us the best chance of resurrecting the eCOST brand and business. While that transformation is still a work in progress, the momentum is building and we're now in our third straight quarter of sequential revenue growth and operational improvements at eCOST.

As we continue to breathe new ideas and opportunity into eCOST we see greater opportunities for our vision for growth and profitability to be realized at all levels well above where we are today and we believe that will translate into stronger returns for our shareholders many of which have supported us through a difficult transition.»

I'll keep holding PFSW for the long term.

I am holding my first buys at less than $1.  I had some $ get freed up and I have been using them to add to my positions in PFSW, SWIR, NVTL, IMMR, CIMT, GIGM, and GSB.  Excluding PFSW at $1.25, all of the others were picked up during the bad market dip around 8/16.  I have alot of confidence in these picks, my two top favorites are PFSW and IMMR.  The more I read about IMMR, the more I see this as truly revolutionary technology.  Great picks David !!!

Great decision to buy on 8/16, JKN! Applaud.

Thanks...I felt that the market fundamentals had not changed drastically, nothing fundamentally had changed with any of the picks, and that those fundamentals are well insulated from the liquidity crisis, other than market sentiment.  The trader in me still wants to be stock-hopping but until I build enough capital to play fast and loose, I won't do it.  I also think trading can be highly profitable in the right market with hot sectors, but for me, today, this ain't it.

Thanks Again..applause to David.  I'm overdue on that anyway.

Quote from: JKN on September 26, 2007, 11:41:54 AM
Thanks...I felt that the market fundamentals had not changed drastically, nothing fundamentally had changed with any of the picks, and that those fundamentals are well insulated from the liquidity crisis, other than market sentiment.  The trader in me still wants to be stock-hopping but until I build enough capital to play fast and loose, I won't do it.  I also think trading can be highly profitable in the right market with hot sectors, but for me, today, this ain't it.

Thanks Again..applause to David.  I'm overdue on that anyway.

Thanks for sharing your thoughts on trading JKN

I guess the more capital you'll have, the less you'll want to play it fast.

I've been studying some more about PFSW. It seems gross margin will always be in the 10% range, at least that what management says and what competitors have. So what the company needs is cost control to put some more of that gross profit into the bottom line.

In this respect Q2 2007 was a great quarter, because gross profit increased from $11 M to $13 M, and SG&A costs went down from $12 M to $10 M (this compared with Q2 2006). Hence the $3.4 M adjusted EBITDA.

PFSW's fundamental trends are positive and the improvement seems to be just beginning, I'll continue holding PFSW.

PFSW had its lowest volume in almost two months yesterday. I guess the stock will need some more positive news releases to move towards $2. I'm very confident that the next few quarters earnings releases will be very positive, as the latest quarter was just the beginning of PFSW's fundamental turnaround to profitability. I'll hold PFSW for the long term.

PFSW seems to be growing as a company, look at them looking to hire more and more people here: jobs at PFSWeb

In my valuation model I'm looking for just 10% revenue CAGR, but, if we consider e-cost.com revenues grew 25% in Q2 2007 from Q1 2007, my estimate can be well below where reality is going to be.

But it is perhaps somewhat of a long shot to expect a 3% net profit margin, PFSW is really a very low margin business. Still, 3% seems so low. We'll see what the next few quarters bring (I'm specially enthusiastic about the 4th quarter, because that's seasonally the strongest), I'll continue holding PFSW for the long term.

Nothing new today for PFSW, I'll keep holding the stock for the long term.