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Interesting situation, a company with a p/e of 0.52 and an RSI of 16

October 18th, 2010 · No Comments

The stock is down 87% in the last 6 months. But the low p/e and RSI shouldn’t be reassuring. Interesting it is nevertheless..

Some factoids:

So basically, they’re on the ropes. There are way too many loose ends to jump in now (unless you are a reckless gambler with a death wish), but we’re inclined to say that in principle, there is enough business for them to survive (and even make a decent living). But much of that seem to depend on whether they can weather the present near perfect storm. They have $6M in cash and $109M in debt, not terribly reassuring either (although they pay a modest 2.8% interest on the debt). At the minimum, we would wait until that audit committee has a verdict on their legal compliance. That seems by far the most important issue right now.

Tags: DJSP