Buy PTIX @ $2.70

Performance Technology Inc. (NASDAQ–PTIX)
Price March 26, 2010-$2.70

PTIX is a network product and service company.

As of December 31, 2009, PTIX had $30 million in net cash and investments and was actually slightly profitable in Q4 after you exclude all the special charges and credits. Our valuation is $7.13 per share so it is trading at 38% of our valuation. Cash is $2.64 per share or 98% of the market price.
Revenues are about $30 million a year, with 53% gross margins.

Institutions own about 50% of PTIX with Bank of America and Quaker Management both owning about 15% each.

This stock is supported by $2.64 per share in cash, has decent margins, survived the crash of 2009 and has no insider holders that could stop an acquirer if an offer was made to buy the company.

PTIX trades only about 10,000 shares a day, so patient buying is required.

There are about 11.1 million fully diluted shares outstanding.

About Performance Technology:
PT is a global supplier of advanced network communications solutions to carrier, government, and OEM markets. PT’s portfolio includes IP-centric network elements and applications designed for high availability, scalability, and long life cycle deployments. The company’s entire line of offerings is anchored by IPnexus®, PT’s own IP-native, highly integrated platforms and element management systems. OEMs and application developers, including PT itself, leverage the robust carrier grade Linux® development environment and rich suite of communications protocols (PT’s NexusWare®) of IPnexus Application-Ready Systems as a cornerstone component of their end product value proposition. PT’s SEGway™ Signaling Solutions provide low cost, high density signaling, advanced routing, IP migration, gateway capabilities, SIP bridge, and core-to-edge distributed intelligence. The company’s Xpress™ NGN applications enable evolving Mobile 2.0, Multi-media, and IMS based revenue generating services. PT is headquartered in Rochester, NY and maintains sales and engineering offices around the world


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