I am a PARL shareholder but keep my eye on PERF as PERF is a significant customer of PARL. My primary concern when I look at PERF is that the music keeps playing so that nothing bad happens to PARL.

However, when I look at PERF, I see a potential scenario that could hurt PERF shareholders. As you know, the Nuss family owns about 70% of the stock and has about $90 million in debt that is subordinate to GECC. You also know that PERF violated a debt to equity covenant (total leverage ratio) as first disclosed in the 10-Q. One of the ways that PERF can cure this situation is to have the Nuss family convert some or all of their debt into equity. This would mean diluting the common shareholders down to practically nothing (since the stock price is so low) but it would cure the covenant violation.

When looking at PARL, its stock price has been beaten down as well but the Nuss family holds only 10% of the shares and no debt. Also, PARL has tangible book value per share of over $5 and that is made up of cash, AR (a large portion from PERF) and inventory less liabilities. As a result, PARL could be liquidated for much more than the current share price. IMO, those invested in PERF should investigate shifting their $ to PARL. Just one person's opinion.