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Released on Wednesday, October 12, 2011, 8:00 AM ET

Pittsburgh, PA (SpeculatingStocks) - Pennichuck Corporation (NASDAQ:PNNW) is a water supplier corporation which has only recently been making headlines because of a recent delay in a contracted sell-out of real estate property to a third-party.

But what is really nice about this corporation is it is undergoing a current merger, and is currently under a Direct Merger Agreement with City of Nashau, NH. In fact, recent news supports the agreement with a direct purchase price at $29 per share. With a stock that is currently trading at $28.40 per share (4:00 PM EDT, October 11th, 2011), and trades as low as $28.02 in recent intraday levels, that could mean immediate gains, and with enough volume, could be a quick way to put some money into play and make some in return.

Pennichuck reported net income of $1.62 million last quarter and while that might not seem like a lot the company is a micro-cap. stock running a market capitalization around $133 million. PNNW also has a rather high P/E, which could mean the stock might regulate itself soon to reflect a more stabilized P/E, or this could reflect investor optimism with the current merger position. In either case, the stock seems to be potentially undervalued as the enterprise value is at roughly $190 million, $58 million above its market capitalization.

Technicals also show that at the end of September the stock was trading at lows in its stock prices, and was undersold for the period. Recently, PNNW has risen to counteract that oversold status, causing the EMA to intersect with the MACD. Over the next few days it is possible that, according to MACD analysis, the stock price will continue to hold a bullish divergence and increase. Held by a 5-day $28.02 support the stochastic indicators showed a switch over from bearish to bullish short-term prospects early in the trading day October 10th, 2011

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