PFSW – Sell Recommendation

By: ispeculatornew
Date posted: 01.09.2007 (12:00 am) | Write a Comment  (0 Comments)

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PFSW – PFSweb (Nasdaq) (Closing Price – $1.37)

When I originally recommended PFSW I believed the stock was undervalued but I did not think the share price would run up so quick (51% in a little over three weeks). In light of this runup I think now would be a good time to cash in your profits.

The share price has benefited from a few favorable press releases (a couple of which were about previously disclosed contracts) and the anticipation of PFSW regaining compliance with Nasdaq. PFSW will regain compliance and its stock price might get a boost when that is announced, but after that I don’t see any short term catalysts.

The volume has exploded recently and I think there are a lot of daytraders and momentum players that have jumped on the bandwagon of this stock. When the momentum dries up it could be dangerous to continue holding PFSW.

If you want to play the momentum game be sure to take profits (if there are any) along the way. I personally have sold my shares and I will wait for fourth quarter results before I decide if I want to buy back in or recommend PFSW again.

For now I am going to end my coverage of PFSW and I am going to book a gain of 51%.

Disclosure: I do not own shares of PFSW.

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