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I am a retail investor and I used techncial analysis to pick a stock. I tried to get the sector right using fundamentals and economics. With a strong technical background, Technology is my strength. Recently, I became interested in bio tech stocks but likes the resource sector as I am Canadian.... More
  • PPHM Recent Results And Third Party  0 comments
    Sep 26, 2012 2:02 AM | about stocks: PPHM

    Let me share my thoughts on the roller coaster stock and its recent results. To those that deal with the Corporate world, independent third party tends to be a cover up, it represents a cushion in case of a story like the one just released where the results was blamed on third party data and interpretation. The third party chosen by the company must be "friendly", if you get my drift. It is like a researcher hired by a Drug company to write and article about one of their product. Where are they going to find Kumar in India? It is reasonable to believe that the company knew about the flaw and was hoping to convince their potential partners after all, there were several articles questioning the results.

    I had a resource stock-same thing, the independent third party over estimate the reserves by almost twice. So they fired the third party. These things get notice when discussion starts either for a finance request or a partnership discussion when the experts are in the room and serious questions get asked by professionals and experts. You can be assured of a wave of justified negative articles in the next few days around trust, possible dilution and the data itself. The only sure thing that can make this stock return to respectability is for the CEO to come out and say exactly what happened and once the market believes it, then it will return to the 4-5 range.

    Having said that, if the CEO does not respond I am still hoping to jump in if there is sizeable correction in the next few days and ride the wave, I will not hold it overnight. If nothing is said by the company, investors should not be surprised to wake up one day and see a massive correction once again and this time it is going to 39-50 cents.

    Good luck to all

    Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in PPHM over the next 72 hours.

    Stocks: PPHM
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