Is this the board about Public Investments Holdings Corporation?

Initiating PHC At Hold Given Thin Trading Liquidity, Risk/reward Profile At Current Valuation - Deutsche Bank Comments




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Thu Sep 06 14:59:00 2007 EDT
(RTTNews) - Thursday, Deutsche Bank initiated coverage of PHC, Inc. (PHC) stock with a Hold rating
and a price target of $3.25.

Analyst Darren Lehrich believes PHC is emerging as a viable, albeit somewhat small, competitor in
the attractive behavioral sector. PHC maintains a uniquely diversified business including bed-based
facilities, outpatient services, EAP and clinical research.

While the analyst considers PHC to be an interesting behavioral pure-play worthy of attention amongst
risk-tolerant micro-cap investors, he initiated coverage of PHC stock given its thin trading liquidity
and risk/reward profile at the current valuation.

Upon opening a development project in Las Vegas in calendar 2008, PHC will operate five inpatient/residential
psychiatric facilities with 180 beds. It remains the smallest of the publicly traded behavioral hospital
chains by far. Yet, the analyst expects steady bed growth to fuel PHC's facility-based business, while
revenue exposure in the outpatient, EAP and clinical research organization (CRO) segments should provide
investors with a diversified earnings stream.

Ultimately, the analyst believes PHC's strong presence in the Detroit, MI and Las Vegas, NV markets
could make it an acquisition candidate for a larger behavioral chain, although our investment thesis
is not in any way underpinned on take-out prospects given senior management's independence and long
duration in the behavioral business.

Alternately, the analyst's price target equals 10.0x calendar 2008 EV/EBITDA. The analyst uses a
higher multiple for PHC than for Psychiatric Solutions (PSYS) as he expects it to absorb start-up losses
over the next year as it ramps up a new hospital in Las Vegas.

On a normalized basis (ex. $0.02-$0.04 of start-up losses), the analyst's price target multiple is
similar to the 3-year average of a broader universe of small-cap health care service providers (c. 20x
P/E and 9x EV/EBITDA).

For comments and feedback: contact editorial@rttnews.com
Copyright(c) 2007 RealTimeTraders.com, Inc. All Rights Reserved

Compare PIHC to PSYS. Little doubt that PSYS management has executed their strategy better as well as making a number of acquisitions. PE differential is interesting though. Looks as if PIHC is undervalued.

Volume picking up. On Wednesday it was 600,000+.

Earnings release and CC tomorrow.

Results just released. Great quarter.

Earnings will be released on 2/9. They will also be having a CC.

Nice upward move today (+0.13 to 1.63). No news. Earnings will hopefully be out within the next few weeks. Have not seen a company earnings release date yet.

Recent Schedule 13G:

Marathon Capital Management, LLC
P.O. Box 771
Hunt Valley, MD 21030

Current Position: 1,153,800 shares = 6.3%

I'm in this a.m. Fundamentals look good. If they are good at what they do, they can help a lot of people. Tim

News release today. Expansion of a contract in Michigan. Should increase EPS. Stock is still the same price that it was at year end ($1.44).

Believe that this will be a good stock to own in 2005. The businesses are easy to understand and the company has really turned the corner as far as being profitable (i.e. the business model works). Interestingly, Peter Lynch is an investor and owns 4.1% of the shares. They recently opened a new facility in Michigan and have yet to record any revenues from it so starting with the upcoming quarter we should see a decent % increase. So they will easily beat any of the previous years revenue numbers. The most recent CC is well worth listening to. The demographics for their businesses are very favorable and there are numerous opportunities to open new facilities. The stock did not have a big run-up in price during 2004 (in general this sector did not do well) and I believe that we could see a nice steady upward move to $2.00+ during the year. At the current valuation PIHC is certainly an attractive acquisition candidate as a slightly bigger player could buy them for less than 1X revenue. Not a get rich quick type stock but at a price below $1.50 it is a solid buy.

Well, yes it can. Even though it is red, it just means there is less money going into the stock, but it doesn't mean people are willing to pay a higher price for it. So proce can move no matter where that is. I am still in the process of learning about the money flow but I've seen and expirenced stocks that went up while still in the red.

BigTips
thanks... yes, i understand that nothing is 100% guaranteed.
but also,,Chaikin Money Flow is negativ.. so, the stock can go up without money flowing in to the stock?

watcher: 1.55 is the resistance. If it gets past that then it will most likely move up. I meant 1.40 which is the support. If it goes below what very little support it has there, it will drop a bit more.

Also, see Point A and Point B? If this closes negative Monday or Tuesday, Point B will indicate a downtrend has been established, not confirmed. Big Difference.

2 Things I need to say: #1. Nothing is 100% Guaranteed. #2. What I said is for short term investing only. Long term could be good, I haven't done enough DD on it.

BigTips
hi. how do u know
If it closes below 1.45 sell because it will drop further.
If it can close above 1.55, look for another move up.

please. can u explain it?
i like to watch your analysis,(thats why i'm on this board) :) thanks for doing it.
good luck.

Wow. I get the 1st post. I feel Honored. lol

PIHC Chart. Been following it since Nov. 19th and technicals look great.

Uptrend has been established so look for this one to move up.
If it closes below 1.45 sell because it will drop further.
If it can close above 1.55, look for another move up.