Sicole, did you expect anything else? Does anyone remember the independent experts report on GIO?
Of course it is unreasonable to assume no growth in the domestic business, just as it is also unreasonable to assume no new contract signings for the International business over the next 12 months.
As I wrote a month ago, the biggest problem PWK faces is the off balance sheet liability related to PPC-1, but even factoring this in, fair value is well over $7.00 assuming only minimal growth in the business.
It wouldn't be tough for these guys to raise 4 or 5 million shares and pay down the rest of PPC-1 with surplus cashflow. As a shareholder I would be more than happy to forgo a dividend this year so that PWK could fully pay down PPC-1 and continue to drive growth through the strong demand for their cable.
The best we can do is vote no the proposal and hope big players like Fisher stand their ground.
PWK Price at posting:
$6.17 Sentiment: None Disclosure: Held
