Pivot Technology Solutions Inc. selling off since October 2015

Mar 2nd, 2016 – 1 Comment

A speculative investment.


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Lou Schizas is an equities analyst, investor, entrepreneur, professor and television and radio personality – and a true believer in the happiness-inspiring powers of capitalism.


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PTG LOGO

Hi Lou,

Do you think Pivot Technology is a buy, sell or hold ?
Thank you
I value your opinion

Nello

 

Hey Nello,

Thanks for the assignment. This will be my first look at Pivot Technology Solutions Inc.(PTG TSXV). The company is essentially a one stop shop where organizations can customize all aspects of their computing and communications infrastructure.

Here’s the rub. PTG is not the only company chasing opportunities in this market segment.

Their market capitalization is $72.63 million and their average daily trading volume is 408,154 shares a day over the last three months. Both of these characteristics imply that this stock should be included in the speculative portion of your portfolio.

The company had been considering a plan of arrangement that would have converted common shares into preferred shares. However on February 24, 2015 the board of directors decided to not proceed with the plan.

An inspection of the charts will help identify how to proceed with this stock.

 

PTG

The three-year chart indicates that PTG shot up from $0.15 in January of 2015 to over $0.60 by May of last year. Through most of 2015 the stock traded in a range moving sideways with support near $0.50 and resistance close to $0.60

Things have gotten dicey in 2016 with the shares breaking below the 50 and 200-day moving averages in January and a death cross forming in early February.

 

 

 

 

PTG2

The six-month chart depicts a stock that has been labouring under a downtrend since October of 2015. It also provides a close-up of the death cross that surfaced in early February. At the moment there is scant evidence that we can expect a trend reversal in the near future.

PTG offers a 7.06% dividend yield which might seem attractive but may not justify buying a stock that have been selling off for six months.

 

I should consider selling and finding a better home for your hard earned capital.

 

Next time I will re-examine the situation at Pacific &Western Bank of Canada (PWB TSX) for Song.

 

Make it a profitable day and happy capitalism!

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