CONCEPT STOCK

I took a look of P today, and this sounds to me like a "CONCEPT STOCK", although I would concede that it’s not a pure CONCEPT as the company does have a rather impressive order book. Nonetheless, the company has an EV of $250 million, with no revenue whatsoever. Even we assume it deliver all of its order in next two fiscal years, for 50-60 million revenues, which could, on my back-of-envelop calculation, translate into about 0.10 – 0.15 EPS for fiscal year 2006, assuming that it does not need to issue more shares (which is highly likely). The valuation is simply too wild and too speculative for me.

PJC
PJC’s quarter is on deck next week and I am a little tempted, due to reasonable valuation. (Part of the lure was that I like Shoppers, but valuation’s simply too high for me). I took a look, and I was disappointed. The company missed everything in last quarter Q3/04, estimates were cut across the board, management’s guidance was vague. I guess there’s a reason why PJC’s valuation is low because it deserves it. I guess I have to wait for its Q4/04 report before doing anything.