PASHealth (OTCBB: PASO) is down 24%. Will the stock recover?
ORIGINAL ALERT INFO :
ALERT DATE & PRICE: 07/07/08 @ $.97 ALERT EMAIL:CLICK HERE CURRENT PRICE: $.73 CURRENT % ROI: -24%
COMPANY CONTACT INFO:
PATIENT ACCESS SOLUTIONS, INC.
245 Marcus Blvd.
Hauppauge, NY 11788 PHONE: (866) 280-1156 FAX: (631) 233-3739 EMAIL:
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WEB:www.pashealth.com
Since announcing our latest project, the stock is down 24%. It has not been pretty for all of us. Welcome to the crazy world of microcap investing. It can be very fun when the stocks are going your way or it can get pretty UGLY when they head south.
It doesn’t help much when the major indexes are down more than 2 percent, including the Dow Jones industrial average, which lost more than 230 points today.
If you bought PASO’s stock based on the promotional campaign, then you did it for all the wrong reasons. This is a long-term play that will develop over time. It just so happens that their development occurs a lot faster than 90% of the other microcap companies out there. Personally, I consider this to be a buying opportunity or a place where you can average down on your current position. If you liked it at $.90-$1 a share, then you definitely have to like it at $.73 a share.
Like I said in yesterday’s email, this is a situation where short-term traders get replaced by long-term investors and this allows for gradual stock appreciation as the company executes their business plan.
Anyone looking for a quick run up in the share price is asking for trouble, because anything that rises fast, will always come down faster.
You need to ask yourself why you decided to get into the stock in the first place. Did you decide to get in to make a quick trade or did you really look at the company and like what you saw?
There are a lot of bashers out there right now, which is fine considering what has happened to the stock. I consider these types of people to be like the leaves of a tree. They go whichever way the wind is blowing and in the long-term, they don’t have a chance of survival. For every day trader that shows up in the market, there are two that are leaving.
The bottom line, is that the stock is still down 24% since we alerted you of it. Having said that, the company is on fire right now as they have three pilot programs going on, with three major Home Healthcare Agencies.
I usually never read any of the message board stuff, because most of it is just babble anyway and today one of my employee’s brought me a print out of one of the posts. It said something along the lines of “This company is a fraud! Stay far away!” I just thought to myself – who in their right mind would actually believe this stuff – investor’s are smarter than this, right?
A quick look at just one of their press releases shows that the company has pilot programs going on with three major Home Healthcare Agencies and at this very moment, they are currently beginning contract discussions with one of them. Not to mention, if they watched the PASHealth Stockumentary, they would know that the founder of one of the major Home Healthcare Agencies is also a shareholder in the company. On top of that, another one of their products is in 15 hospitals across North America. So a fraud – I don’t think so. Anyway, I just hate when I hear or read something stupid. Always remember that knowledge is key to making money. Stupidity doesn’t pay the bills.
Everyone should buy what they know and what you know now, is that this company has something very special going on or else none of these big firms would be wasting their time with a pilot program. Be smarter than the crowd. The crowd is usually wrong. That is why floor traders trade against the herd.
If you missed yesterday’s email, then here is quick recap:
PASHealth has pilot programs going on with three different companies that have a combined total of 35,000 nurses. If they are able to close just 5,000 out of the 35,000, it is game over. The stock will be fundamentally sound at $2 a share for a possible 174% gain!
Here are how the numbers break down (to view the full breakdown from yesterday's email, CLICK HERE):
5,000 licenses x $10,800 = $54,000,000 over 36 months
$54,000,000 / 3 (years) = $18,000,000 per year in gross revenue
$18,000,000 x .37 (margin) = $6,660,000 per year in net income
$6,660,000 / 44,000,000 shares = 0.1514 (est EPS in the first 12 months)
0.1514 x 15.5 (industry avg p/e multiple) = $2.3461 share price
To conclude, you need to examine why you invested in this company. Is it because some guy on a message board told you to buy it for a quick flip, or did you buy it because you really understood the massive opportunity presented here?
These are very tough times for everyone in the markets, but I will guarantee you that there will be people that make money and plan on being one of them.
If you make money during these times, you can bet you are going to thrive when the markets turn around.
I can see the stock trading above $1 a share in the very near future. Patience is key.