Well… still no 10-K yet, and after modest gains over the last few days, PNCH suffered a loss of almost 10% today. We are losing confidence that the 10-K and/or shareholder meeting will be the catalyst everyone thought it would be. Most were expecting a substantial run up leading into the release of the 10-K… but volume has been low the last couple of days, and PNCH can’t seem to hold even a penny. This is not promising !
You know the old saying in investing… “buy the rumor – sell the news”. Well… no one is buying the rumor, and we fear that unless the 10-K is “stellar”, investors will be selling the news regardless of the revenues.
Of course there is plenty of speculation on the cause of this lackluster performance of late, from the short sellers on LieHub (if there really are any) to the evil marker makers. Truth is… who really cares… because whatever is the cause… its working. The PPS is, and has been, languishing below a penny for several months, only popping temporarily to high of a penny and a half for only a few days last month.
Not sure what the future holds for PNCH, but unless this 10-K is stellar, and/or Steve can pull a rabbit out of a hat at the shareholder meeting, we think the PPS will languish for a while longer. Perhaps, and assuming… each successive quarterly reports start showing substantial gains, then the PPS might start a gradual climb northward. However, unless there are some new eyes and investors on this stock, the gains will be modest along the way. Steve needs to be able to attract a lot of new investors to this company. He needs an Academy Award performance at the shareholder/upfront meeting Sunday ! There is only so much the current shareholders can do. They likely have most, of not all, their available funds tied up in this thing, that there is very little they can do in the way of buying more shares to move it up.
Stayed tuned folks… we should know something by next week. We think trading next week will set the pace for the short term future. Based on the buying pattern leading up to the release of the 10-K and the shareholder meeting… we are not optimistic about this thing getting much over a penny or more, and holding it. We hope we are wrong ! Maybe after the 1st quarter 10-Q is released in a few weeks things will be looking better, but that is assuming that the revenues show another substantial increase. Keep in mind, the figures on the 10-K are already over 3-months old. If the 1st quarter is released in a timely fashion, and they are great, then maybe we start to see some improvement… but there are a lot of if’s to get by first.