I am at a loss to understand the CONTINUED downward spiral of the share price.
Jan 2014 has seen a clear drop in share price to AUD 7.7 cents per share that PSA have not experienced since May/June 2000 when the company was in the throws of a Chapter 11 Bankruptcy.
Now, 14 years later they have clearly come out on top of this situation with a positive bank cash balance , producing assets and no debt ...
I am no longer sure what is provoking INSTABILITY in the share price....
Any outcomes that may emerge from negotiations/ventures that are presently in train have NOT been settled and do NOT appear to be factored into the current share price equation ....
BUT the stock value appears to be getting hammered as if there is no existing profit making assets , very little cash ($28mil?) and no ongoing negotiation for the future growth and no outcome to look forward to ?
The last Quarterly Report did not indicate any resolutions but it did infer that some progress is expected in the first half of 2014.... It also highlighted improvement in Cash Bank Balances and indicated that PSA actually generated Sales and Profit from existing assets.... which are ongoing ...
Without any new published information on the progress of the new opportunities it is hard to understand what has provoked this recent downturn.
In this anxious state of negotiation/limbo I would be more concerned if the cash balance was steadily depleting and that we had no ongonig producing assets but the last three quarterly reports have shown that is clearly not the case ...
Shareholders the Market Cap now stands at roughly $17.8 mil (231.2 mil shares x .077 = $17.8) compared roughly to $28 mil in cash balances (refer to recent quarterly) which means the share price is roughly 37% LESS ( 100 - $17.8/$28.0 = 37%) than the cash balance.
I hope some progress on the new ventures can be achieved sooner rather than later to help arrest this ridiculous situation ...
PeterRG
PSA Price at posting:
7.7¢ Sentiment: Buy Disclosure: Held
