Friday, December 8, 2017

Riding the Wave of Agitation at PRAC

One thing that encourages me to buy into a stock is change. Change creates opportunity and can cause a stock to soar. It doesn’t always work out but the potential is there.

Productive Technologies Corp (PRAC) is undergoing serious change. Or at least one dissident director is pushing hard for serious change. Jesse Levine, the CFO, is fighting for control of the company with his uncle, the chairman. The company de-registered from the SEC in 2006 and vanished. The stock tanked, with a bottom of less than a penny in 2012. Out of nowhere Levine started putting out press releases in Sept 2017 discussing his desire to start a dividend and realize the value of PRAC for shareholders. Why the change of heart you ask? I don’t care. What matters is we have a large inside shareholder pushing for major change in a dead stock.

Friday, December 1, 2017

DAAT is Cheap

Today we're going to play my favorite game, Value That Stock!  I can see you're overcome with joy.  Here are the numbers:

  • Rev $13.1M in 2016 vs 12.6M in 2015 vs 10.9M in 2014
  • Net income $100k vs 81k vs 21k
  • EPS $0.02 vs 0.02 vs 0
  • Shares 5.33M
  • No long term debt
  • BV $5.2M vs 5M vs 5M

I'll go with a range of $5M - $10M for those numbers. If it was run better they would be more profitable but let's just say $8M to take a number and that would be $1.50 per share.  

Current stock price is $0.24, giving a market cap of $1.3M, so it's cheap however you look at it. Whether that value will ever be realized is a different question.