Quote:‘Their Gross margin will be maintained, I belive because...

Quote:
‘Their Gross margin will be maintained, I belive because they will pump the 'extra/Benefit' margin into growth.’

This backs up an earlier post I made about the emphasis for PEO being on growth. PEO seem to be strongly focused on growing as fast as possible with making a profit taking a back seat. I can see some wisdom in this as they are more likely to stay around and eventually make decent profits if they grow to the half a billion dollars a year company Ryan O’Hare talked about some time back.

If growth is the main priority then PEO has to be looked at as a medium to long term investment with the share price staying low until they decide to make profit the most important priority. If we knew when this was to occur that would be a good time to buy into the company with the chance of making a relatively quick profit.

However there is also the unknown as to wether another company decides to make a bid for PEO or if PEO decides to make a major acquisition both of which could result in a sudden big change in the price. Given my loss if I sell all I’m going to sit and wait patiently and I figure that Colin Marland would not buy more shares without being confident the share price will rise in the longer term as I don’t think he is an altruist.