I am new to this, but this one looks hot! What do you think? Thanks Steve
Posted by Gary59 on :
Here is some quick DD for you wholesale::: I am still trying to find out why this dropped from around 4.60 to 1.03 in 2 days . I do notice not a lot of volume on this but the drop in price might bring volme up : Here is the 8K that dropped the price but it does not look like it should have fell this far ,I will keep my eye on it though.. "" TUCSON, ARIZONA — October 22, 2008 — The Providence Service Corporation (Nasdaq: PRSC) today announced that despite a recent notice of award in South Carolina and an acquisition announced today in Georgia, the Company’s financial results and ability to forecast earnings continue to be challenged by a number of external factors.
While the social services segment, excluding Canada, is expected to meet the Company’s expectations for the third quarter of 2008, the transportation segment has rate issues caused by higher utilization in a few markets as well as a delay in an expected rate increase in one market. The Company is going back to all of the applicable payers in this segment to seek additional rate consideration but these negotiations are uncertain, often protracted and can extend over quarters and often year ends.
While the Company did not provide guidance for the third quarter of 2008, the transportation trends and anticipated results in Canada are expected to reduce diluted earnings per share by approximately $0.18 in the third quarter from the amounts previously anticipated by the Company, of which approximately $0.15 is attributable to the transportation segment and approximately $0.03 is attributable to Canada. In addition, a goodwill impairment analysis of the LogistiCare transaction initiated as a result of the Company’s declining stock price is anticipated to result in a non-cash charge to earnings of between $90 million and $120 million in the third quarter. As a result, the Company expects to report a substantial loss when it reports results for its third quarter ended September 30, 2008 on November 4, 2008 after the market close.
Due to the utilization trends and payer rate negotiation uncertainties in the transportation segment, mediation in Canada related to previously announced revenue cap enforcement, interest rate uncertainties, remaining procurement activity and the uncertain start date for the new South Carolina transportation contract, the Company is withdrawing its guidance for 2008. Providence expects, however, to incur a substantial loss for the year due to the non-cash impairment charge described above.
On a positive note, Providence today announced that it has acquired 100% of the stock of AmericanWork, Inc., a community based mental health provider operating in 23 Georgia locations. The transaction has a total cash purchase price of $3.5 million, with approximately $3.0 million paid at closing and the balance held back for one year to secure indemnity obligations. The acquisition is expected to add approximately $13.0 million to annual revenue and is expected to be accretive by approximately $0.06 per diluted share in 2009.
“We intend to take steps we believe are necessary to stabilize the business and position ourselves to be able to grow in 2009,” said Fletcher McCusker, Chairman and CEO. “There have been so many moving targets this year that it has negated the historical visibility our business has traditionally enjoyed. Our payers are
Posted by Rockster on :
quote:Originally posted by wholesaledealer: I am new to this, but this one looks hot! What do you think? Thanks Steve
If you bought this now, kiss your money goodbye... is that what you mean by hot.. red hot!! This thing is falling faster than a rocket. with sell pressure.
If you like it, buy a little or wait until your sure the selling is over. This is a nasdaq stock so you have volume that is one good thing.
Posted by Rockster on :
I got in at .998 watched it go down to .75. I got lucky it closed at 1.20 yesterday & I put in sell on Monday morning! Steve
Posted by Gary59 on :
Steve , If I remember right you work all day and are not able to watch your account. That in my opinion is a big reason to only get into something that you do not want to have to set and watch.Like AAPL GE , something that you wont come home one day and see that it tanked, I know in this market I will not hold anything unless it is a quality company, GE is not a recomendation right now but you might want to do a little more research and get into bigger companies that have a better history. If you are playing for quick flips you need to be in front of the computer the whole time you are trading in my opinion here. Good luck Gary
Posted by Gary59 on :
And just to add , thats how I lost a few thousand last year buying specs and not being there to manage them..
Posted by Gary59 on :
Well this is trading at 1.40 pre market this morning....Good call Steve, hope your here to watch it ...Not sure what it will do after open today..
Posted by wholesaledealer on :
I got lucky today Gary! Thanks Steve
Posted by Gary59 on :
Hope you held a few of those its up to 2.84 now ,,,,Man you have had a few good ones for a beginer Steve..
Posted by wholesaledealer on :
I sold them all today. The first batch at 11:00 am pst at $2.17 & the rest around 12:30 for $2.76 It was a great day for me thanks Gary. Steve
Posted by wholesaledealer on :
I am back in at 1.90 & wait for a good come back on Tuesday!! Steve