I have a 40 year background in accounting and finance at a number of public and private companies in increasingly responsible positions and have been a CFO for the last 20 years. My background in preparing financial statements, reporting to the Securities and Exchange Commission and having been involved in a number of company sales and purchases are invaluable tools in reading and understanding public company financial statements and their valuations.
We stopped publishing our free weekly CSI Blog after 10 years of publishing at the end of 2015. We are following our 3 remaining open positions until the end.
In late 2015 we started offering a paid subscription service which is similar to the Blog, but we tell you exactly what stocks we bought and why—and sold every day, with a weekly summary of activity, open positions, how many shares we own and their valuations.
I have averaged a 42% gain on the 35 stocks I have sold (33 winners and 2 small losers) in my private portfolio since January 1, 2016. Nine of the 35 stocks have had buy-out offers, including six in 2017 and two in 2018. But none in 2019—yet.
If you are interested in becoming one of our private paid subscribers, please e-mail me at email@example.com.
Here is the list of private subscription stocks I have bought and sold since December 2015.
2019 PERI, 77% gain
2019 Tech storage company, sold 66% for a 42% gain
2019 EXTR, 15% gain
2019 Medical Device company, sold 15% for a 48% gain
2019 DHI Corp, 46% gain
2019 Medical device company, (sold 27%), 49% gain
2019 Lantronix, 41% gain
2019 PDLI, 15% gain
2018 The Rubicon Project 1% gain
2018 Otelco 116% gain.
2018 Global Ship Lease 4% gain
2018 Telecom Services (57% sold) 3% gain
2018 Lantronix, 52% gain
2018 Ceragon Networks, 82% gain
2018 Networking Co. (1/3 sold) 17% gain
2018 Pitney Bowes 31% gain
2018 Calix-1% gain
2018 Xerox 34% gain, Buy-Out
2018 RMG Networks-1% gain
2017 Telecommunications Co., 59% gain (partial sale)
2017 magicJack 17% gain, Buy-Out
2017 eGain 56% gain
2017 YUME 90% gain, Buy-Out
2017 MaxPoint Interactive 60% gain
2017 Shortel 24% gain, Buy-Out
2017 Tremor Video 25% gain
2017 MRV Communications 6% loss, Buy-Out
2017 Ceragon Networks 55% gain
2017 Angie’s List 60% gain, Buy-Out
2017 Lantronix 135% gain
2017 Syneron Medical 46% gain, Buy-Out
2017 RocketFuel 140% gain
2017 Conduent .1% gain
2017 Harmonic 74% gain
2016 Ceragon Networks 48% gain
2016 Alphatec 71% gain
2016 Universal Insurance 36% gain
2016 Mitel Networks 15% gain
2016 Avid Technology 50% gain
2016 Silicon Graphics 70% gain, Buy-Out
2016 Imatron 30% gain
2016 Harmonic 80% gain
2016 United Online 5% loss, Buy-Out
AVID got bombed on Q2 earnings.They were really not bad but you sure shouldn’t tell from the stock price, plunging from $10.09 to $6.53. Revenues came in at $98.7 compared to $98.6 last year and Non-GAAP net income came in at $.02 a share compared to a $.10 loss last year. Apparently they “missed” some analyst estimate of $101.7 million in sales and $.04 earnings. My valuation did fall from $16.39 to $14.33 versus $14.64 in Q2 2018. This was big over reaction in my opinion. The stock has rebounded bit since earnings.
ATEC is up 128% this year, but still is down 26% lifetime. ATEC raised about $57 million is a share offering in August at $4.60 a share. It got snapped up pretty quickly at only a 10% discount to the market price when it was announced.
SYNC has not participated in the market rally. SYNC reported Q2 earnings. Not bad, and about as expected. At this point I hope the AT&T contract winds up quickly. Maybe then the focus can be on their recurring revenue base. Revenues came in at $31.8 million compared to $35.9 million last year. Loss was $2.2 million (Non-GAAP) compared to $2.3 million last year. Net cash was about $9 million. My valuation fell to $4.12 from $4.23, but of course this includes the soon to be gone AT&T revenues and income. Without AT&T, I estimate the valuation is still over $3.
August 2019 Legacy Positions:
Lifetime Gain (Loss)-(43%)
YTD Gain (Loss)-(1%)
Price to Value ratio-35%
Lifetime Gain (Loss)-(26%)
YTD Gain (Loss)-128%
Price to Value ratio-108%
Lifetime Gain (Loss)-(11%)
YTD Gain (Loss)-57%
Price to Value ratio-52%
I closed my position in Perion (PERI) for a 77% profit.
I also sold another 1/3 of my Tech Storage company for a 51% gain, bringing my total gain so far to 42% on the 2/3’s I have sold.
Last week I some some more of my Adtech stock for an 81% gain. I also sold 33% of a Tech storage company for a 34% gain.
Of our closed out positions on the Blog, since inception, we have had 71 winners, 19 losers for a 79% win-rate with an average gain of 35.7%.
We will continue to update on the remaining stock positions individually until they are all sold.
AVID has continued to move up and is now up 116% this year and 23% lifetime.
ATEC is up 105% this year, but still is down 33% lifetime. ATEC raised about $57 million is a share offering last week. It got snapped up pretty quickly at only a 10% discount to the market price when it was announced.
SYNC, is down 1% this year and 43% lifetime. They announced that they are losing the AT+T contract, but the effects will not be felt until 2020 as they wind down and transfer the business. MGMT needs to sell this puppy.
July 2019 Legacy Positions:
Price to Value ratio-35%
Price to Value ratio-97%
Price to Value ratio-63%
I sold a bit more of my AdTech position for a 60% gain. In total I have sold 50% of my position for a 58% gain.
I sold my position in Extreme Networks last week for a 15% gain.