Good Day,
I looked into this back in December too.
Back when it was below $1.
Thought it was a steal. http://www.divguy.com/2007/10/safe-dividend-stocks.html
http://www.glenbradford.com/blog/archive/2008_11_01_archive.html
I listened to conference calls, read the reports, did the research. But, none of the professors at Purdue really were able to answer my questions — I didn’t have the time and they didn’t have the time. As I recall, I was very concerned about the negative shareholder equity. I was scared out of something I semi-understood and definately-believed in. *Mental Note*
So, I missed out on 1000%. Won’t be the first time. Damn that sucks.
What do we do with PRSC now?
Well, I wouldn’t buy it now. It’s too expensive (that means less reward and more risk to me) than other companies I’m looking at. Forward P/E of about 10 based on what I can tell. The upside is only 200% from this point. I’m a go big kind of guy. I do my best to eliminate the risk of going home empty handed.
Nicola, thanks for bringing this to my attention. Even though I missed out, it’s good to know that I was right on this one. Learn from your mistakes.
Glen
From: Nicola Vallieri [mailto:n.vallie
Sent: Monday, May 25, 2009 8:45 AM
To: gbradfo
Subject: Stock tip
Dear Glen,
I am still invested with most of my holding into PRSC which I am going to keep on holding for another year but I’d like your opinion about it.
PRSC was a real stock from “Providence” to me. I went all-in in early november after months of real blood bath, where I lost 3/4th of my initial capital. I bought the same day Obama won the election for the following reason: US government can’t provide health service to everybody on its own. Moreover PRSC comes 1/3th of its business from states, which suddenly became nasty payers, causing a spiraling falling down of the PPS. I trusted the management when they said there was no problem with the debt convenants (see bk) and I was right. PRSC was the first company to exit the crises topping the russell 3000 index during the first quarter of this year. Looking forward I am confident PRSC will be the first company to regain its pre-crises value around 30$ cause growth is already there although it is still not so evident since the management decided to not pubblish their 2009 EPS guidance yet.
Anyway since I’m an engineer and I’m used to crunch numbers I tried to perform my own guidance with the data I got in early april. The result is the following:
http://messages.finance.yahoo.com/Business_%26_Finance/Investments/Stocks_(A_to_Z)/Stocks_P/threadview?bn=25927&tid=2014&mid=2032
(I’m vitruvian_boy)
Any suggestion from you would be greatly appreciated.
Thank you,
Nicola (Italy)