Net-Net Peerless Systems Corp. PRLS

Check out my updated more detailed look

Net Current Asset Value
$49.22 mil

Market Cap
$38.7 mil

PRLS's cash has been very stable the past couple years and even increasing. $47 million of that $49 million of NCAV is in cash and short-term investments. If I could get one guess about the direction management is going with this company it would be a liquidation because they've reduced liabilities consistently since 2008.

This company is simply just slowing down. Revenue is down from $30 million in 2007 to $10 million this last year. It doesn't seem like there is that great of a long-term trade. Sort of like a EFJI that I predicted had upside as far as $2.00. Following my post on the 27th of September it ran from 1.30s to 1.97. Just as my magic 8 ball predicted $2 was a ceiling. The next level of technical resistance on PRLS is 2.85 a share right now.


full disclosure:no position