WSD Insider
RSS
Google Plus
Twitter
Facebook

The Three Most Offensive Questions and Answers… Ever



Comments (3)

  1. Grant Brown says:

    What happened to the big announcement with PAMT that was supposed to happen by march 30th. This stock was touted for a good while by you guys and nothing that was predicted would happen has so am I supposed to hold on to this stock and hope that it spikes again or is this the time to take the little bit of gain I have and jump over board. Please let us know your thoughts on the announcement that was supposed to happen thanks

    [Reply]

    Wall Street Daily Research Reply:

    As you know, we’ve been eagerly awaiting an announcement from Parametric Sound(PAMT). Specifically, the completion of another lucrative licensing agreement. Management revealed that it retained the services of Houlihan Lokey, the world’s largest, privately owned investment bank and the No. 1 M&A advisor for U.S. transactions under $3 billion. As Executive Chairman, Ken Potashner, said, “The Company has been approached by several industry leaders in key target verticals to discuss strategic alternatives.” The “strategic alternatives” presented to management are above their pay grade to negotiate. So they’ve hired the big guns to assist them. All along Louis has said that Parametric’s technology is so disruptive that companies won’t want to simply license it. They’ll want to own it outright. In fact, the last time Louis spoke with Potashner, he asked him point blank if his exit strategy involved being acquired. He naturally didn’t answer directly. Instead, he deflected to say that he first wants to focus on the opportunities immediately in front of the company.

    So what’s Parametric worth in a buyout?

    On a standalone basis, Louis is convinced the company was on its way to a billion-dollar market cap. That’s based on the fact that its technology addresses multiple, multi-billion-dollar end markets. And yet, the company currently trades for a market cap of just over $100 million.

    Management is not stupid. They recognize the future value of their technology, too, so they’ve no doubt adopted a Godfather-esque negotiating stance. Meaning they’re only interested in a deal if someone makes them an offer they can’t refuse. Tech companies like Sony (SNE) and Microsoft (MSFT) certainly possess the financial wherewithal to do just that. They’re sitting on $17 billion and $68 billion in cash, respectively. And they could very well be interested in Parametric because of the technology’s applications in the gaming industry. Being the sole maker of a gaming console with 3-D sound would be an unprecedented competitive advantage. Time will tell if either of these companies is indeed one of the “industry leaders” that approached Parametric.

    Bottom line: Parametric is easily worth $40 in a buyout. That works out to a market cap of about $250 million, which is chump change for any major consumer electronics company.

    You can also get more updates from Louis by signing up for his MicroCap Tech Trader Service found here

    [Reply]

  2. jtwirth@gmail.com says:

    Your last paragraph in answering question #1, contains the statement: ” …A well diversified approach ALWAYS makes the most sense in investing…”.

    Normally, this is somewhat true, but depends on what you mean when you use the term, “well diversified approach”.

    Many times, my clients fared better by either investing in their own company, or chose a company that they had studied for a long time, both the technical aspects, but most importantly, the fundamentals. If they have become convinced that they know the company extremely well, they might put upwards of 50 or more percent of their investing funds into that stock. Seldom have I seen that fail, and I have been at this for six decades.

    [Reply]

Add Comment

Hide me
Show me