This is a low risk/high reward play. The stock has been shot down hard and I think shorts will continue to fade their positions. Great upside potential here..

http://stockcharts.com/h-sc/ui?s=PGWC&p=D&yr=0&mn=3&dy=0&id=p32467755233

I have to admit I don't know enough about their business other than the company's profile and from reading their latest quarterly statement:

http://www.edgar-online.com/bin/cobrand/?doc=A-1126752-0001164150-06-000175&nav=1&src=Yahoo

Also, after reviewing the insider transactions of primarily large purchases by the CEO, CFO, and other executives, I believe they have faith in their company and its products even in light of the news that Pegasis Wireless is the first victim to fall to Apple's new technology platform.

I believe the author of that article may have been misguided because the Apple digital video platform has little to do with the market for Pegasis's primary products of selling and installing wireless components that allows schools to connect disconnected business units and departments.

I agree with you that the stock was unnecessarily beaten down and a surprise upside is near for the short trader but I would wait until the downturn is over.  I think the stock has a few more price points to fall before I would jump in.  I would probably set an entry point at 1.12 or somewhere near there.

The attached graph indicates that the fall is not quite over with yet with the RSI at a significant low, the MFI sitting at almost an oversold condition.  Also, the MACD indicates an upturn is eminent.

Further, I checked out their balance sheet for the past two quarters and the Net Current Assets (NCA or Working Capital [Current Assets - Current Liab] in each case stands at 7M and 5M respectively.  Plus the NCA is sufficient to cover any LTD so there is strength in the fundamentals.

They also consolidated facilities and sales teams with their subsidiary AMAX.  So this should keep operating costs low as the company moves forward.

This is a buy for me.  Make sure you do your homework before investing.

- Bill

Well it looks like I was a little off in my assessment for PGWC's entry point.  I forecasted that it would present a buying opportunity around 1.12 but the stock dropped lower than that.

Looks like I need to dig a little deeper to perform a little more DD.  I'm not sure what the driving factor is that's pushing the stock even lower other than the negative article indicating PGWC is a victim to the Apple Video platform.

I'll try to find more info about their operations, markets, and customers.  It just seems to me that they're in a good market that has expanding opportunities in wireless as more companies eliminate horizontal and vertical cabling.   Hmmm.....

Still thinking about jumping in on this one but need to find more info about them.  If you have any information about them...toss it into the mix.  I'd like to read about it.

- Bill

This Chart is real ugly...if you can bottom fish by all means, I can't.

I'd stay away until this thing can work sideways and get its 50dma above its 200dma.  

Bottom fishing has high risk, low reward profile.  If you keep your cut loss strategy tight you may be alright.  I just wouldn't risk capital at this point with PGWC.