I, too, was told about PSN by a friend, who had invested in the company in October 2012.
I was planning on buying shares before Q3 results, but noticed the stock was not able to hold key moving averages, so I decided to wait for the Q3 numbers.
The Q3 report is disturbing on many fronts. Most specifically, management credibility. For that reason, I believe most of the big guys (or funds) are existing this stock – they are definitely not buying as there is way too much uncertainty.
Anyone considering buying this is based on pure gamble and speculation. Having said that, why would anyone take a chance on this management or why would one not want to wait till they announce a dividend cut?
Here is what I believe:
- Dividend will be cut
- Funds are dumping this stock
- Funds are not buying this (look at the buyer/sellers…it’s mostly retailers buying)
- IMO, management has lost credibility and it will be impossible to get back
- Given the trading today, some bad news is in the pipeline
Anyone looking to buy into this, is not doing it as an investment, but a flip base purely on chance.