Premier Exhibitions (Nasdaq: PRXI), which I previously covered (not so long ago–aka last night), released not one, but two PRs (this one and that one) this morning and got downgraded by a firm that initiated coverage with a “Buy” just two weeks ago (October 15th to be exact) the same day strongly worded filing (OK, that’s the last link I swear) and agreed to take a salvage award for the thousands of Titanic artifacts they previously claimed to own. There’s a lot of “PRXI said, the court said” involved here so who knows who’s right (given my cynical stance, I side with the court), but when PRXI brings up a court case from 1869 to use as their defense (in the PR itself!!), I know I’m out of my comfort zone.
And since this is kind of a big deal, PRXI is buying back 1 million shares, apparently in an attempt to shore up confidence (by saying hey, we still have two badass exhibits going for us and now that our stock is down 40%+ off its highs, we’re gonna roll the dice and see if we can double down).
So, what to do now? Hmmmm, I’m gonna say leave it alone–the shorts have won for now, but PRXI could easily squeeze those mofos outta there by issuing the long awaited PR detailing their new exhibits of which they have always said “they’re comin’, they’re comin’”.
Given today’s gradual downtrending to $10.68, I have a feeling the stock will drift down to the high single digits, but the potential for a short squeeze keeps me on the sidelines. My distrust of all smallcap corporate management keeps me from buying. Still, it’s fun to watch this play out!
Disclosure: Timothy Sykes has no position in PRXI, but enjoyed a bag of popcorn while watching the past few days’ play out–he gives this saga two thumbs up.
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