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:
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.