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Posted On: 09/18/2012 10:31:44 AM
Post# of 99387
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Posted By: RobInvest

I have a penny stock for all the MVP'ers to keep watch.  This was alerted last week by Pharaoh as a bounce play.  Unfortunately, the chart was broken and we are still finding a bottom, but the selling is now slowing.  PULS is the stock.  I listened in on the CEO's strategic recovery plan last week.  Basically, the company has a debenture note due in February that needs to be taken care of.  Once they announce the plan to restructure this debt, I can almost guarantee a bounce from these levels.  The company generates $300+ million in revenue each year, the EPS is negative mostly due to this debt, so I anticipate a huge move in share price if they release a positive update on this debt restructuring.  The CEO also outlined a few other options being considered, such as selling assets of the company or selling the company outright.  The latter could be ideal for someone at these levels as a buyer with cash, that can take care of the debt, will pay a nice bit for the $300 million a year in revenue, which I expect will increase if and when the economy improves.  The last offer from BELFA was $2.50, which was rejected by the CEO although I am sure some shareholders wouldn't mind that buyout option right now.  I would absolutely love a quick payout option like this!  The MM's are slowly walking this down.  Keep in mind a possible delisting of the stock when performing DD on this stock, but at some point this will hit a bottom and we should see it bounce.


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