PFSW

[David Randolph]

First we've had the following press release:

• PFSweb Partners with Three New Service Fee Clients
Business Wire (Tue 4:05pm)

These aren't big deals, but two of them are in Europe with well known names (Loreal and Proximus) and this tells me this business unit is getting traction in the European market. I've been learning that this "service fee" segment is perhaps the most important in driving profitability for PFSW as a whole, because it carries a 25-30% gross margin, while, for example, at eCost.com the company aims at achieving just 9-10% gross margin.

Then we've had the 3rd quarter earnings release:

• PFSweb Reports Second Consecutive Quarter of Net Income and $3.2M in Adjusted EBITDA
Business Wire (Tue 4:06pm)

These results don't show the same sequential improvement that we've seen in Q2 2007, but they're not disappointing either.

Total revenue was up 5.66% sequentially to $112 M, even though eCost revenue remained flat.  Net income increased just a little bit to $162,000 from $154,000 in Q2 2007 (and minus $3.2 M in Q3 2006). Adjusted EBITDA was $3.2 M, compared to $3.4 M in the prior quarter and just $5 K in Q3 2006.

There's a lot more to talk about on the specifics of these results, but, because I'm sick and late, let me just say that I'm pleased with them and remain confident about this company's long term outlook.

Then we've had the conference call. They didn't provide much light into the 4th quarter or next year ... I just captured two important issues, one related to expansion (eCost will start selling to Canadian and European costumers - this is great, there isn't as much competition in Europe and I believe there will be more pricing power) and the other related to valuation:

- According to PFSW's CEO, its competitors are being valued by the market or in private transactions at an average of 15 times EBITDA. If we consider PFSW's 2007 EBITDA will be about $10 M, it should then be a $150 M market cap company to be valued at average. But no, it is just a $57 M market cap. The stock would need to rise to $3.26 to be valued at average.

I guess this earnings release won't be powerful enough to push PFSW above the $1.59 resistance level, at least not over the short term, but I believe it will be enough to keep the stock comfortably above $1 until we get more significant news.

Since the long term outlook remains as I expected I'll keep holding PFSW for the long term. On my valuation model I've just changed the EPS multiple estimate, cutting it from roughly 27 to 20, so now the optimal selling price given by my valuation model is $4.51.

[setravis]

AFTER HOURS - TOP STORY.......
(PFSW)
PFSweb Adds 3 New Contracts
Worth $6M-$8M Total for BPO Solutions
PFSweb, Inc. (PFSW) announced the addition of three new service
fee clients worth approximately $6-8M over the various terms of the
agreements, based on current client projections. Neither PFSweb
nor the clients disclosed the value of any of the individual contracts.
Stated Mike Willoughby, President of PFSweb's services division,
"These agreements represent continued traction for our world-class
BPO solutions in North America and Europe. We continue to be excited
by the potential for further new contracts as our pipeline remains
robust at approximately $40M, which includes over $12M in proposals
added in the third quarter.

[setravis]

AFTER HOURS - TOP STORY.......
(PFSW)
PFSweb Adds 3 New Contracts
Worth $6M-$8M Total for BPO Solutions
PFSweb, Inc. (PFSW) announced the addition of three new service
fee clients worth approximately $6-8M over the various terms of the
agreements, based on current client projections. Neither PFSweb
nor the clients disclosed the value of any of the individual contracts.
Stated Mike Willoughby, President of PFSweb's services division,
"These agreements represent continued traction for our world-class
BPO solutions in North America and Europe. We continue to be excited
by the potential for further new contracts as our pipeline remains
robust at approximately $40M, which includes over $12M in proposals
added in the third quarter.

[setravis]

Press Release Source: PFSweb, Inc.


PFSweb Reports Second Consecutive Quarter of Net Income and $3.2M in Adjusted EBITDA
Tuesday November 13, 4:06 pm ET 
Service Fee Business Increases Revenue 18% in the Third Quarter; Announces Several New Client Agreements
eCOST.com Financial Performance Continues To Improve


PLANO, Texas--(BUSINESS WIRE)--PFSweb, Inc. (Nasdaq: PFSW - News), a global provider of business process outsourcing ("BPO") solutions for both online and traditional commerce, today announced its financial results for the third quarter and nine months ended September 30, 2007.
Summary of consolidated results for the third quarter ended September 30, 2007:

-- Total reported revenue was $112.0 million, compared to $94.3 million for the third quarter of 2006; 
   
-- eCOST.com revenue increased 62% to $27.0 million, compared to $16.7 million for the same period last year; 
   
-- Adjusted EBITDA (as defined) was $3.2 million versus $5,000 for the same period last year; 
   
-- Net income was $162,000 or $0.00 per basic and diluted share, compared to a net loss of $3.3 million, or $0.07 per basic and diluted share, for the third quarter of 2006; 
   
-- Merchandise sales (as defined) totaled approximately $751 million for the third quarter of 2007 versus approximately $720 million for the same period last year; 
   
-- Total cash, cash equivalents and restricted cash equaled $16.8 million as of September 30, 2007. 


Mark Layton, Chairman and Chief Executive Officer of PFSweb, stated, "This is the second consecutive quarter of consolidated profit since completing eCOST.com's integration. In addition, Adjusted EBITDA increased to $3.2M from just $5,000 in the third quarter of 2006. These results represent steady growth in our Services Business and a more efficient, improved eCOST.com. Going into the peak holiday shopping season, which we expect will be eCOST.com's strongest quarter moving forward, we are confident in our ability to deliver another strong financial performance and currently expect to be toward the high end of our consolidated Adjusted EBITDA guidance for 2007 of $8 to $10 million."

Summary of consolidated results for the nine months ended September 30, 2007:


Total reported revenue was $324.8 million, compared to $314.3 million for the nine months ended September 30, 2006;
Adjusted EBITDA (as defined) was $7.3 million versus $1.6 million for the same period last year;
Net loss was $2.0 million, or $0.04 per basic and diluted share, compared to a net loss of $8.1 million, or $0.19 per basic and diluted share, for the nine months ended September 30, 2006;
Merchandise sales (as defined) totaled nearly $2.1 billion versus $1.9 billion for the same period last year.
Please note that the prior year's nine months consolidated results only include the financial results for eCOST.com from the date the merger closed on February 1, 2006 through September 30, 2006.

Summary of results by business:

Service Fee Business:

For the third quarter of 2007, Service Fee revenue increased 18% to $18.4 million, compared with $15.6 million for the same period in 2006. The Service Fee business reported Adjusted EBITDA of $2.0 million for the third quarter of 2007, compared to $0.1 million for the same period last year.

For the nine months ended September 30, 2007, Service Fee revenue increased 11% to $53.0 million, from $47.7 million for the same period in 2006. The Service Fee business reported Adjusted EBITDA of $4.3 million for the nine months ended September 30, 2007, compared to $3.4 million for the same period last year.

The increases in Service Fee revenue and Adjusted EBITDA are primarily attributable to activity from new clients that were added late in 2006, increased project activity in the current year and the favorable impact of exchange rates. In addition, the Service Fee revenue for the third quarter of 2007 benefited from a shift in timing of transaction volumes from a large client into this quarter as opposed to earlier in the year.

Mike Willoughby, President of PFSweb's Services Division commented, "During the quarter, the Service Fee Business excelled, generating nearly 20% revenue growth (excluding pass-through activity). We are also pleased to announce several new client agreements were signed in the recent months. We believe this new business is driven by our ability to provide clients with global scale, world-class infrastructure and custom solutions. We continue to be excited by the potential for further new contracts as our new business pipeline remains robust at approximately $40 million, which includes over $12 million in proposals added in the third quarter."

Supplies Distributors Business:

For the third quarter of 2007, Supplies Distributors revenue was $58.3 million, compared to $55.9 million for the same period last year. Adjusted EBITDA was $1.6 million for the third quarter of 2007, compared to $3.1 million for the same period last year. The decline in Adjusted EBITDA is primarily attributable to certain incremental inventory cost reductions that occurred in the 2006 period.

For the nine months ended September 30, 2007, Supplies Distributors revenue was $174.7 million, compared to $185.2 million for the same period last year. Adjusted EBITDA was $5.0 million for the nine months ended September 30, 2007, as compared to $6.4 million for the same period last year.

Mr. Willoughby continued, "During the third quarter, results for the Supplies Distributors Business were within our expectations, with revenue of $58.3 million, a 4.3% increase over prior year, and gross margin of 6.9%. Revenue for the 2007 nine month period reflects a decline year over year due to reduced vendor promotional activity, the impact of foreign currency fluctuations and lower unit volumes as compared to the prior year."

eCOST.com Business:

For the third quarter of 2007, eCOST.com revenue increased 62% to $27.0 million, compared to $16.7 million in the third quarter of 2006. Prior year revenue was negatively impacted by service and product merchandising issues incurred in conjunction with the 2006 integration activities of eCOST.com into the Company's operations. On a sequential basis, eCOST.com's quarterly revenue remained steady compared to $27.1 million in the second quarter of 2007 and improved significantly compared to $21.6 million in the first quarter of 2007. Adjusted EBITDA for eCOST.com in the quarter was a loss of $0.4 million, a significant improvement as compared to a loss of $3.2 million in the same quarter of 2006, a loss of $0.6 million in the second quarter of 2007 and a loss of $0.9 million for the first quarter of 2007.

For the nine months ended September 30, 2007, eCOST.com revenues increased nearly 13% to $75.7 million, compared to $67.2 million for the same period in 2006. Adjusted EBITDA for eCOST.com in the nine months ended September 30, 2007 was a loss of $1.9 million, compared to a loss of $8.1 million for the same period last year. The prior year nine month period results for eCOST.com reflect only eight months of activity from the date of acquisition of February 1, 2006 through September 30, 2006.

Mr. Layton continued, "We are pleased with eCOST.com's performance now that we have improved and streamlined its operations. These advancements have led to significant improvements in gross margins and Adjusted EBITDA results for the quarter and nine-month results. Revenues for the business were up about 12.5% for the nine months ended September 30, 2007 from the prior year period and gross profit margins increased to 8.4%. The improved gross margins are due to broader product mix, improved pricing controls, freight initiatives, reduced credit card chargeback activity and an increased number of Virtual Warehouse agreements," concluded Mr. Layton.

Significant operating events for third quarter of 2007:

-- Service Fee Business added four new partners totaling $3 to $4 million in annualized service fee revenue, based on client projections once fully implemented. 
   
-- A large specialty retailer signed a two year agreement for PFSweb to provide a seamless customer service solution in the U.S. that supports its direct to consumer business unit. 
   
-- Microlife AG Europe and the Blood Pressure Association (BPA) in the United Kingdom signed a two-year agreement with PFSweb for website design, configuration and hosting, order fulfillment, distribution, warehousing and financial management support for their e-commerce partnership in the U.K. 
   
-- L'Oreal, the world's largest beauty company, selected PFSweb to provide an end-to-end fulfillment and customer service solution for its Diesel brand perfume "Fuel for Life" line. PFSweb will provide a full service solution for L'Oreal's online store, www.diesel-parfums.com/factory, including web hosting support, warehousing, order processing, fulfillment & distribution, kitting and assembly, returns and multi-lingual call center support from its European facility in Liege-Belgium. 
   
-- Proximus, the largest mobile telecommunications operator in Belgium, selected PFSweb to provide a full service solution for their on-line store, http://www.e-proximus.be/, including web design and hosting, warehousing, order processing, fulfillment & distribution, returns and multi-lingual call center support. 
   
-- PFSweb was named to Deloitte & Touche's 'Fast 500' and 'Texas Technology Fast 50' as one of the fastest growing companies in the U.S. and Texas over the past five years 
   
-- PFSweb named a 'Top 100 Great Supply Chain Partner' by Global Logistics and Supply Chain Strategies Magazine 
   
-- eCOST.com launched enhanced catalogue search capability powered by Visual Sciences in time for the Holiday season. 
   
-- eCOST.com added 2 new Virtual Warehouses in the third quarter of 2007, bringing the total number of Virtual Warehouses to 14. Virtual Warehouses enable eCOST.com to market more new products, expand product categories and are targeted to generate higher margins on sales. 


Financial Guidance for Fiscal Year 2007

PFSweb continues to target total consolidated revenues, excluding pass-through revenues, of approximately $420 million to $435 million and consolidated Adjusted EBITDA of $8 – $10 million for 2007. Capital expenditures for 2007 are estimated to be approximately $6 - $7 million, including amounts financed under capital leases. Achieving these targets will depend upon, among other things, achieving and maintaining the currently expected significant improvement in operations from eCOST.com and continued strong performance from our Service Fee and Supplies Distributors businesses on a year-over-year basis.

Conference Call Information

Management will host a conference call at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) on November 13, 2007 to discuss the latest corporate developments and results. To listen to the call, please dial (888) 694-4728 and enter the pin number (9363780) at least five minutes before the scheduled start time. Investors can also access the call in a "listen only" mode via the Internet at the company's website, www.pfsweb.com. Please allow extra time prior to the call to visit the site and download any necessary audio software.

A digital replay of the conference call will be available through December 13, 2007 at (877) 519-4471, pin number (9363780). The replay also will be available at the company's web site for a limited time.

Non-GAAP Financial Measures

This news release contains the non-GAAP measures Earnings Before Interest, Income Taxes, Depreciation and Amortization ("EBITDA") and Adjusted EBITDA.

EBITDA represents earnings (or losses) before interest, income taxes, depreciation, and amortization. Adjusted EBITDA further eliminates the effect of stock-based compensation, merger integration related expenses and a loss on a sales transaction to a former eCOST.com customer. EBITDA and Adjusted EBITDA are used by management, analysts, investors and other interested parties in evaluating our operating performance compared to that of other companies in our industry, as the calculation of EBITDA and Adjusted EBITDA eliminates the effect of financing, income taxes, the accounting effects of capital spending, stock-based compensation, merger related expenses and certain other expenses, which items may vary from different companies for reasons unrelated to overall operating performance.

Merchandise Sales

Merchandise sales represent the estimated value of all fulfillment activity that flows through PFSweb including whether or not PFSweb is the seller of the merchandise or records the full amount of such sales on its financial statements, excluding service fee revenues that PFSweb might recognize for the underlying sales transactions. PFSweb uses merchandise sales as an operating metric to allow investors to gain a more thorough understanding of its business and business volume, in addition to GAAP net revenue.

About PFSweb, Inc.

PFSweb develops and deploys integrated business infrastructure solutions and fulfillment services for Fortune 1000, Global 2000 and brand name companies, including third party logistics, call center support and e-commerce services. The company serves a multitude of industries and company types, including such clients as LEGO, Riverbed, Fathead, CHiA'SSO, MARS Drinks North America (formerly FLAVIA® Beverage Systems), Hewlett-Packard, International Business Machines, Hawker Beechcraft Corp. (formerly Raytheon Aircraft Company), Rene Furterer USA, Roots Canada Ltd. and Xerox.

Through its wholly owned eCOST.com subsidiary, PFSweb also serves as a leading multi-category online discount retailer of high-quality new, "close-out" and manufacturer recertified brand-name technology and consumer electronics for consumers and small to medium size business buyers. The eCOST.com brand markets approximately 110,000 different products from leading manufacturers such as Sony, JVC, Canon, Hewlett-Packard, Denon, Onkyo, Garmin, Panasonic, Toshiba and Microsoft primarily over the Internet and through direct marketing.

To find out more about PFSweb, Inc. (NASDAQ: PFSW - News), visit the company's websites at http://www.pfsweb.com and http://www.ecost.com.

The matters discussed herein consist of forward-looking information under the Private Securities Litigation Reform Act of 1995 and is subject to and involves risks and uncertainties, which could cause actual results to differ materially from the forward-looking information. PFSweb's Annual Report on Form 10-K for the year ended December 31, 2006 identifies certain factors that could cause actual results to differ materially from those projected in any forward looking statements made and investors are advised to review the Annual Report and the Risk Factors described therein. These factors include: our ability to retain and expand relationships with existing clients and attract and implement new clients; our reliance on the fees generated by the transaction volume or product sales of our clients; our reliance on our clients' projections or transaction volume or product sales; our dependence upon our agreements with IBM; our dependence upon our agreements with our major clients; our client mix, their business volumes and the seasonality of their business; our ability to finalize pending contracts; the impact of strategic alliances and acquisitions; trends in the e-commerce, outsourcing, government regulation both foreign and domestic and the market for our services; whether we can continue and manage growth; increased competition; our ability to generate more revenue and achieve sustainable profitability; effects of changes in profit margins; the customer and supplier concentration of our business; the unknown effects of possible system failures and rapid changes in technology; foreign currency risks and other risks of operating in foreign countries; potential litigation; potential delisting; our dependency on key personnel; the impact of new accounting standards and changes in existing accounting rules or the interpretations of those rules; our ability to raise additional capital or obtain additional financing; our ability and the ability of our subsidiaries to borrow under current financing arrangements and maintain compliance with debt covenants; relationship with and our guarantees of certain of the liabilities and indebtedness of our subsidiaries; whether outstanding warrants issued in a prior private placement will be exercised in the future; our ability to successfully the anticipated benefits of the merger: eCOST's potential indemnification obligations to its former parent; eCOST's ability to maintain existing and build new relationships with manufacturers and vendors and the success of its advertising and marketing efforts; eCOST's ability to increase its sales revenue and sales margin and improve operating efficiencies and eCOST's ability to generate a profit and cash flows sufficient to cover the values of its intangible assets. PFSweb undertakes no obligation to update publicly any forward-looking statement for any reason, even if new information becomes available or other events occur in the future. There may be additional risks that we do not currently view as material or that are not presently known.


Contact:
PFSweb, Inc.
Mark C. Layton, 972-881-2900
Senior Partner and Chief Executive Officer
or
Thomas J. Madden, 972-881-2900
Senior Partner and Chief Financial Officer
or
Investor Relations:
KCSA Worldwide
Todd Fromer / Garth Russell
212-896-1215 / 212-896-1250
[email protected] / [email protected]

--------------------------------------------------------------------------------
Source: PFSweb, Inc.

[David Randolph]

PFSW is definitely undervalued, but I expect it to remain between $1 and $1.6 for some time to come:

I guess this earnings release won't be powerful enough to push PFSW above the $1.59 resistance level, at least not over the short term, but I believe it will be enough to keep the stock comfortably above $1 until we get more significant news.

As I read PFSW's 3rd quarter results, I almost wish the Supplies Distributors Business and the eCOST.com Business didn't exist. These are very low margin businesses. It will be good if they just don't lose money. Of course, it is the management's objective to make money with these businesses, but they will always be very low margin businesses.

The value seems to be inside the Service Fee Business:

«For the third quarter of 2007, Service Fee revenue increased 18% to $18.4 million, compared with $15.6 million for the same period in 2006. The Service Fee business reported Adjusted EBITDA of $2.0 million for the third quarter of 2007, compared to $0.1 million for the same period last year.»

«Mike Willoughby, President of PFSweb's Services Division commented, "During the quarter, the Service Fee Business excelled, generating nearly 20% revenue growth (excluding pass-through activity). We are also pleased to announce several new client agreements were signed in the recent months. We believe this new business is driven by our ability to provide clients with global scale, world-class infrastructure and custom solutions. We continue to be excited by the potential for further new contracts as our new business pipeline remains robust at approximately $40 million, which includes over $12 million in proposals added in the third quarter."»

In the conference call management said the Service Fee Business is a 30% - 35% gross margin business. Gross margin was 29.8% in Q3 2007.

We've also had significant positive news for this business segment this week:

• PFSweb Partners with Three New Service Fee Clients
Business Wire (Tue, Nov 13)

I must say that I've bought PFSW because of eCost, but now I see that eCost isn't the most important business for PFSW's long term success. This means I didn't know a lot about the company and need to improve on my "pre-buying" analysis.

Anyway, I also enjoy this "support for e-commerce" business a lot, perhaps even more than an electronics goods online retailer business.

I'll keep holding PFSW for the long term.

[hyhl]

David, do you know why OSTK went up a lot recently? Thanks.

[hyhl]

http://www.bizrate.com/ratings_guide/cust_reviews__mid--18045.html

Ecost starts to respond to reviews on bizrate, that is interesting.

[David Randolph]

David, do you know why OSTK went up a lot recently? Thanks.

I don't know hyhl, so I just initiated a thread at the Watch List message board so I can study it later. Thanks.

http://www.bizrate.com/ratings_guide/cust_reviews__mid--18045.html

Ecost starts to respond to reviews on bizrate, that is interesting.

Thanks for the link hyhl

It seems eCost has been improving its costumer service:



The sector continues to be very attractive in my view:

«You may have noticed just today in today's Wall Street Journal, Forrester Research was quoted as saying, "US consumers are forecasted to spend about $33 billion on internet purchases between Thanksgiving and Christmas." That's up 21% from last year. I think the overall retail projections for the year, a growth of about 4% overall, so clearly traditional retail is predicted to have a soft holiday season, but web commerce in general is continuing to flourish as more consumers flock to gain the benefits of convenient shopping, larger selections, and easier access to in stock products with a growing in the security and capability of web merchants like eCOST.»

PFSW's facility in Belgium will help eCost sell its products also to European costumers, which I believe will provide another source of strong growth for the company.

I'll continue holding PFSW for the long term.

[pinoleropuro]

check it out!
today PFSW appeared on MSN but this is what they had to say about it.

PFSWeb Inc: Stock Rating SummaryPFSWeb Inc, a micro-cap value company in the consumer services sector, is expected to significantly underperform the market over the next six months with above average risk.

10 is the best possible rating.

[David Randolph]

check it out!
today PFSW appeared on MSN but this is what they had to say about it.

PFSWeb Inc: Stock Rating SummaryPFSWeb Inc, a micro-cap value company in the consumer services sector, is expected to significantly underperform the market over the next six months with above average risk.

10 is the best possible rating.

Yeah, like they knew the company. They say that because like most people they're bearish on the consumer and small caps. They apply a general rule to all stocks, not considering the specifics of each business. I would and will ignore that information.

Even though the valuation of e-tailers doesn't reflect it, the sector continues to grow strongly:

Cyber Monday online sales jump 21%
Consumers spend $733 million online on Monday after Thanksgiving - first official day of the online holiday shopping season - far more than expected.

This should benefit eCost.com. I wonder when will the company announce it will start selling also in Europe, hopefully using the facilities it has in Belgium. It's just that there isn't any strong brand name in Europe like the ones you have in the US (beyond Amazon) and I believe this could be a huge opportunity for eCost, especially with the Euro this strong ... the products I see at eCost are incredible bargains for an European with euros in his pocket instead of USD.

The stock took a beating like most micro caps ... but I'm pretty positive this is a multi-bagger if held for a couple of years, fundamental trends are positive and the stock is undervalued (it should be 200% higher considering other companies' in similar industries valuation).

I'll keep holding PFSW for the long term.

[David Randolph]

Wow, eCost.com is doing much better than the industry average:

• eCOST.com Kicks Off Holiday Shopping Season with Strong Web Traffic and Sales Demand During Black Friday/Cyber Monday
Business Wire (Wed 8:00am)

Great news

[terainvestment]

yes, finally our stocks are going to be rewarded

[David Randolph]

yes, finally our stocks are going to be rewarded

yeah, I hope so

«From November 22 through November 26, eCOST.com's booked revenue increased 67% compared with the same Thanksgiving holiday period last year. On Black Friday, eCOST.com saw a 105% increase in demand vs. Black Friday 2006.»

These numbers are really significant. In Q4 2006 eCost.com had $21.5 M in revenue and a 67% increase would lead to about $36 M in sales for the quarter. Management said the break even point for eCost.com is about $30 M so this can lead to a very significant upside surprise to the company's full year 2007 guidance of $8 M - $10 M adjusted EBITDA.

This fundamental information should be enough to drive PFSW 50% higher or more. Volume still didn't kick in today ... I think we can have a shot at $1.5 today, everything is right for it, the general market mood, the news, the market cap ... we'll see, it wouldn't be bad to close where we are now.

[David Randolph]

This fundamental information should be enough to drive PFSW 50% higher or more. Volume still didn't kick in today ... I think we can have a shot at $1.5 today, everything is right for it, the general market mood, the news, the market cap ... we'll see, it wouldn't be bad to close where we are now.

Bah, closed around the same place. PFSW has this weird way of reacting to news ... remember when they gave that very positive and surprising update for eCost and the stock still remained around $0.9? And then the actual results came out much better than expected and still, the stock remained below $1? Just a few weeks later we've had that 60% upside move ... perhaps the same will happen now. There's no doubt the improvement at eCost.com is substantial, given the following news release:

• eCOST.com Kicks Off Holiday Shopping Season with Strong Web Traffic and Sales Demand During Black Friday/Cyber Monday
Business Wire (Wed 8:00am)

Perhaps in a few weeks we'll have another 60% upside move, but now up from a $1.20 base, it should take us towards $1.9 - $2. Given the fundamentals, it's probable.

I'll keep holding PFSW for the long term.

[David Randolph]

Just 29,800 shares traded yesterday on PFSW, almost nobody is watching this puppy. I don't care about that. Fundamentally the company is doing even better than I expected and I see it as a multi-bagger over the long term. PFSW is worth a lot more than $59 M, no doubt about it.

Perhaps it will still go down to $1.11 or something like that to make an inverse head and shoulders pattern, I don't know.

I'll hold PFSW for the long term.