The ongoing doldrums at PAX Global Technology (OTCPK:PXGYF) bring to mind a semi-famous quote (often misattributed to Mark Twain or Winston Churchill) that , “a lie can travel halfway around the world while truth is putting on its boots.” Reports of a serious security breach with the company’s terminals, including their use in cyberattacks, and an investigation by the FBI (among others) attracted plenty of negative attention … but hardly any of the sites reporting the sensational accusations reported the follow-up that Palo Alto Networks (PANW) found nothing wrong or out of the ordinary with those terminals.
It remains to be seen how much impact this has had on PAX’s global business, but investors will get a look later this month when the company reports results for the second half of 2021. I expect to see healthy growth in Latin America, but what management has to say about the near-term prospects for growth will clearly be material for the stock. At this point, although the shares look quite undervalued on what I believe should be conservative assumptions, the liquidity and lack of transparency are major issues for me when considering a potential investment.
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