September 27, 2006
SpeculatingStocks.com Stock Pick: Peerless Systems Corporation (PRLS)
Stock Price: $3.09 (long-term strong buy)
Peerless Systems Corporation is a provider of imaging and networking technologies and components to the digital document markets. The company's broad line of scalable software and silicon offerings enables its customers to shorten their time-to-market and reduce costs by offering unique solutions for multiple products.
PRLS just closed a software licensing deal with TallyGenicome. This news broke PRLS out of its range.
Last year, PRLS generated revenue of $36.15 million with net income of $4.31 million. PRLS is trading at a PE of just above 13 and a forward PE of just above 8. PRLS is trading at a market cap of $53.73 million with valuations low compared to industry average.
PRLS is trading at a price to sales of 1.25 compared to the industry average of 6.40. PRLS is trading at 6.6 times cash flow while the industry average is 23.1. The company has $13.22 million in cash on the balance sheet with no long-term debt.
PRLS has a 52-week high of $10.00.
SpeculatingStocks.com Target Price: We expect PRLS to reach $6.00 within the next 2 - 4 months.