RE:Silence is goldenIf I had to give the only reason this stock is trading at such a low price is because its quarterly sales are never consistent. They fluctuate up and down with no ability to forecast them in any precise manner. As you know, investors do not care for that. When we do get a big sale, the stock pops a dime or two then settles back down while almost nothing happens for a while. The thing that never changes however is that when sales are very, very low, this company still makes money. Perhaps not a lot but it takes very little money to run its operation, so that when sales are higher it is all free cash flow that goes directly to the bottom line. Better, that free cash flow is not needed to grow the business, since their zero debt position can take care of any acquisitions if they come up, and therefore that free cash flow is usually passed on to shareholders in buy backs or dividends.
The problem is getting the proper multiple on that cash flow since what cash flow number does an investor use? You kind of have to wait for the dividends for much of one's return or the slow process of investors noticing the unique, monopoly business PSD actually has. I have always wondered why one of the larger oil and gas services companies do not come along and buy this company out completely and tuck it into their service offerings. Put all that extra cash PSD generates to use and perhaps get a decent multiple on it.