PAX is one stock that many would like to forget. It figured in many portfolios during 2007 but performed miserably towards the end of the year. These days, it is languishing at around the price of Php3.00/sh. Twelve months ago it looked ready to hit ten times that price.
Aside from the one-two punch of the falling dollar and the slowing U.S. economy that hit the BPO industry as a whole, PAXYS faced problems of its own. The long and the short is that its revenues failed to hit targets miserably and there was little or nothing to give investors a reason to hang on to its stock.
Just recently though, they announced the formation of a joint venture, implying better business to come. The details are a bit sketchy for me, I have yet to review it to figure out what I think of it. For the meantime, Citisec thinks its positive and is busy changing their Target Price for PAX - presumably for the better.
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