I agree with primestockmanager.....and too picked up entry position between 1.15 and 1.18. Not knowing the stock before at times is good and you tend to be more rationale with facts for which I used Q3 qtrly reports.
PSN actually had tremendous success in US market...28million to 127million (year over year). Paid out some 80+million as dividendend $$. Overall debt increased by 10million so it is obvious collections in revenue kept pace with dividend and operating costs for upto end of September'12.
Issues are likely 2 fold.
A. Q3 report with AR write-off 9.5m, low cash balance 3.5m, growing AR 125m. Even if 50% AR is writeoff PSN still gets 62million which is enough capital to payoff debt !! Market accelerated the fall and so when reality dawns the stock rebounds and rebounds based on how much of AR is write-off ? 20% write off i.e. PSN gets apprx. 100m cash will bring stock to $10 to $14 range.
B. Lack of market and other players will cut the margins. I am sure competition will increase as in any field so PSN will need to work harder to maintain the level of 2012 sales in 2013 with newer better products. It will not be easy for new entry products to replicate PSN success.
Worry I have is for more hidden skeletons .. if there aren't more issues this baby is going to bounce back -;)