Sunday, November 16, 2008

PhotoChannel Update


Hat tip to reader N.L. for alerting me to Aaron Edelheit's recent comment on PhotoChannel Networks (OTC BB: PNWIF.OB) on the Value Investors Club. Edelheit notes that PhotoChannel is moving into business printing:

Very quietly, PNWIF is getting into business printing. Check out the following link for Walmart Canada:

http://www.walmartphotocentre.ca/album/business_landing.aspx

PNWIF gets a percentage of everything uploaded through the site. This is a huge market, that all of their customers could tap including Costco and Sam`s Club especially due to the small business nature of their customers.

This is very positive. But shhh, don`t tell the stock price, it`s too busy going down.


The image above is from PhotoChannel's website.

A general thought on Edelheit's investing modus operandi: with so many currently profitable stocks (including micro caps) trading at low single-digit earnings multiples after the October crash, it would probably make sense for an investor looking to buy now to focus on those companies with current earnings. The idea behind the modus operandi of Edelheit (and other professional investors), that you can get a better price by buying a company before it starts generating profits, makes sense, but given the discounts some profitable companies are trading at, there's probably a better balance of risk versus reward now in focusing on currently profitable companies.

18 comments:

NDL11 said...

The big question is will someone like Edelheit have to start selling in order to meet redemptions and thus drive the price way down. imho

JK said...

OT: Mark Cuban is getting charged with insider trading by the SEC.

DaveinHackensack said...

Saw that, J.K. Interesting.

Kapt. Kangaroo said...

This dog keeps sinking.

With all the great companies now being sold for bargain prices, why would anyone stay with Photochannel?

DaveinHackensack said...

What companies do you like now, Paul?

Paul said...

Your old company Alliance-Bernstein at today's price looks to be tremendous value with over a 12% yield [at the already reduced rate] and with almost no debt.

Even with assumptions of decreased earnings AB is a screaming buy at $15.60.

Paul said...

Jacobs Engineering [JEC], Investment Technologly Group [ITG] and Interactivebrokers [IBKR] are low/no debt with solid fundamentals and bargain prices.

dentist.gone.broke said...

How about Ruby Tuesday, AIG and SLM Paul, thought you had loved them after doing a brainy analysis? RT is almost close to 0, time to load up...

dentist.gone.broke said...

I guess AIG & SLM should be screaming buys now approaching zero, too bad another one of your favorites Merril couldn't scream too much.

I can hear YRCW screaming at 2 bucks and Kemet corporation screaming at 43 cents.

Too many "blue chips" on sale!!

DaveinHackensack said...

I've had my eye on AB, but I think its Q4 earnings and AUM numbers are going to look even uglier than its Q3 numbers. Probably still a good long term buy here, but I think it will be even cheaper after the Q4 numbers are released.

Proud Veteran said...

Unlike some Asian-based investors who rode SRZ to one-half cent, the dentist got out of his misstakes many months ago when he saw they were, indeed, bad choices.

He did not try to defend them once it was apparent they were poor holdings.

dentist.gone.broke said...

Who are these Asian based investors? Never heard of them.

Given the enormous number of putrid picks made by the dentist, getting out in a timely manner sounds like a fiction. But it is good for him that its a virtual marketocracy portfolio and not even a dime in the real market. Paper investing, eh :)

DaveinHackensack said...

We're going to do our part to boost Ruby Tuesday tonight -- heading over to the one in the next town (assuming it's still in business -- we have been there in a few months) for a couple of triple prime burgers.

If anyone wants to reciprocate by buying some alloy steel wear plates, feel free.

DaveinHackensack said...

OK, the Ruby Tuesday in the Garden State Plaza mall in Paramus, NJ is still in business. They still under-cook the triple prime burgers too -- "medium" gets you "medium rare".

Incidentally, this mall -- which is the largest in NJ and one of the largest in the country -- was packed, and it was tough to find parking. So there's one positive local economic indicator, I guess.

DaveinHackensack said...

AB closed below $12 today. Now it's starting to scream.

Daniel said...

Lol. Just noticed the broker is griping about me here--and as usual being as honest as, well, a broker. It's a sad, sad life some people live...

Jim Beam said...

AP NEWS: Nov. 21, 2008

Agriculture stocks around the world are down big on the news that farmers worldwide are now able to substitute DWAHL portfolio results for potash-based fertilizers at a much lower cost.

Details at 6PM.

Eastman Kodak said...

PNWIF hit a new low of 85.2 cents today.

That must be a sign of future developments.