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.
CSI Update May 2020, Private Subscribers
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 I 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.
Through May 31, 2020, I have averaged a 41% gain on the 41 stocks I have sold (39 winners and 2 small losers) in my private portfolio since January 1, 2016. Nine of the 41 stocks have had buy-out offers, including six in 2017 and two in 2018, but none in 2019 or 2020-yet.
My total portfolio was up 72.8% in 2019. I took profit in the entire gain and banked it in cash.
NASDAQ is up for the year on the backs of stocks selling at astronomical multiples—of sales. The NYSE and Russel 2000 indexes are still down but have recovered much of their losses. I am still down in 2020.
If you are interested in becoming one of our private paid subscribers, please e-mail me at daveosowski@gmail.com.
Here is the list of private subscription stocks I have bought and sold since December 2015.
2020 Cutera, 31% gain
2020 Aviat Networks, sold remaining 1/3 for a 7% gain (overall 15% gain)
2020 Telecommunications company-sold 29% for a 25% gain
2020 DHI .4% gain
2020 BioPharma company-sold 40% for a 9% loss
2020 QUAD Graphics-54% gain
2020 Medical equipment company-sold 33% for a 61% gain
2020 Old line media company-sold 50% for a 44% gain
2019 EXFO, 1% gain
2019 PERI, 77% gain
2019 Quantum Corp, sold 48% gain
2019 EXTR, 15% gain
2019 Medical Device company, sold 50% for a 53% gain
2019 DHI Corp, 46% gain
2019 Medical device company, (sold 80%), 69% 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 Aviat Newtowrks. (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
CSI Update May 2020, Free Blog
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.
SYNC which is merging with QUMU reported Q1 2020 earnings. They were not bad but the advertising portion of their revenue was affected by COVID. Revenues were $20.6 million compared to $22.5 million last year (excluding the failed AT+T deal revenues) and they lost about $2.5 million (Non-GAAP). They had just under $9 million of cash. My valuation fell to $2.48 from $4.31. It is still trading at less than 50% of my valuation and the merger with QUMU along with their activist investor may make this a winner yet, but Q2 earnings will likely be bad due to the virus impact on their advertising revenues.
ATEC reported Q1 earnings. Revenues were up to $30.1 million from $25.5 million last year. They continue to lose a lot of money-about $10 million after to take out the litigation, failed EOS deal and stock comp expenses. With elective surgeries on hold for much of March through May, Q2 should be very ugly but I have been in this so long, I am not giving up yet. My valuation fell to $4.27 from $5.30
AVID reported Q1 earnings. Revenues were $86.5 million down from $103.3 million last year with all of the decline coming from their hardware products. Subscriptions and services revenues grew from $48.9 million to $51.7 million. My valuation fell to $11.77 from $18.71. They lost about $3.4 million compared to a $4.5 million profit last year (all Non-GAAP). Impactive Capital has been buying a load of AVID over the last several months and now own 11.6%.
May 2020 Legacy Positions:
SYNC
Share cost $2.56
Current Price $1.10
Lifetime Gain (Loss) (57%)
YTD Loss 28%
Current Valuation $2.48
Price to Value ratio 44%
Prior Valuation $4.31
ATEC
Share cost $7.06
Current Price $4.45
Lifetime Loss 37%
YTD Loss 37%
Current Valuation $4.27
Price to Value ratio 104%
Prior Valuation $5.30
AVID
Share cost $8.35
Current Price $7.06
Lifetime gain -15%
YTD Loss 18%
Current Valuation $11.77
Price to Value ratio 60%
Prior Valuation $18.71
CSI Update April 2020, Private Subscribers
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 I 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.
Through April 30, 2020, I have averaged a 41.7% gain on the 39 stocks I have sold (37 winners and 2 small losers) in my private portfolio since January 1, 2016. Nine of the 37 stocks have had buy-out offers, including six in 2017 and two in 2018. But none in 2019 or 2020-yet. My total portfolio was up 72.8% in 2019.
The virus hammered all of my stocks in March but there was a little rebound in April.
If you are interested in becoming one of our private paid subscribers, please e-mail me at daveosowski@gmail.com.
Here is the list of private subscription stocks I have bought and sold since December 2015.
2020 Telecommunications company-sold 14% for a .3% gain
2020 DHI- .4% gain
2020 BioPharma company-sold 40% for a 9% loss
2020 QUAD Graphics-54% gain
2020 Medical equipment company-sold 33% for a 61% gain
2020 Old line media company-sold 50% for a 44% gain
2019 EXFO, 1% gain
2019 PERI, 77% gain
2019 Quantum Corp, sold 48% gain
2019 EXTR, 15% gain
2019 Medical Device company, sold 50% for a 53% gain
2019 DHI Corp, 46% gain
2019 Medical device company, (sold 80%), 69% 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
CSI Update April 2020, Free Blog
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.
SYNC which is merging with QUMU rebounded 40% in April as video conferencing is now a big thing with the virus forcing companies to not travel or even be in the office.
ATEC called off its expensive merger with EOS imaging. In this market, adding a bunch more debt could be suicidal, so I think this is a good thing in the short term.
AVID. With everybody sitting at home this should be a good time for its subscription business, but maybe not so good for its hardware storage business. The bet here has always been on the software subscription business.
April 2020 Legacy Positions:
SYNC
Share cost $2.56
Current Price $1.45
Lifetime Gain (Loss) (43%)
YTD Loss 5%
Current Valuation $4.31
Price to Value ratio 34%
Prior Valuation $5.05
ATEC
Share cost $7.06
Current Price $4.53
Lifetime Loss 36%
YTD Loss 36%
Current Valuation $5.30
Price to Value ratio 85%
Prior Valuation $5.29
AVID
Share cost $8.35
Current Price $7.02
Lifetime gain -16%
YTD Loss 18%
Current Valuation $18.71
Price to Value ratio 38%
Prior Valuation $13.52
CSI Update, March 2020 Private Subscribers
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 I 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.
Through March 31, 2020, I have averaged a 41.7% gain on the 39 stocks I have sold (37 winners and 2 small losers) in my private portfolio since January 1, 2016. Nine of the 37 stocks have had buy-out offers, including six in 2017 and two in 2018. But none in 2019 or 2020-yet. My total portfolio was up 72.8% in 2019.
The virus hammered all of my stocks in March. On February 22, 2020 when the DOW was just under 29,000, I wrote this to my subscribers before anyone realized this virus would be a big thing:
“The economy seems to be rolling right along, interest rates are low, so what is there to worry about? My biggest “big picture” worry is the massive national debt. Maybe something will be done to deal with this, but one day all of Wall Street may wake up and all run for the hills, whether it is warranted or not. Shorter in, I still think the valuations of many stocks looks like the dot bombs of twenty years ago. I don’t know what will break the momentum of the Tesla’s, Netflix, Amazon’s etc, but if/when it happens, I think it will be very bloody as they make up a huge portion of the entire market value and will take everything down. Then there are the things that the market seems to have absorbed in stride like Iran, N. Korea, Corona virus, the possibility of a socialist government and on and on—so far.
So I have been reducing my market exposure since 2018. I would rather make less money, than lose what I have made.”
Who knew that the market would start plunging the following week? I wish I had sold all my stocks on February 21st!
If you are interested in becoming one of our private paid subscribers, please e-mail me at daveosowski@gmail.com.
Here is the list of private subscription stocks I have bought and sold since December 2015.
2020 Telecommunications company-sold 14% for a .3% gain
2020 DHI- .4% gain
2020 BioPharma company-sold 40% for a 9% loss
2020 QUAD Graphics-54% gain
2020 Medical equipment company-sold 33% for a 61% gain
2020 Old line media company-sold 50% for a 44% gain
2019 EXFO, 1% gain
2019 PERI, 77% gain
2019 Quantum Corp, sold 48% gain
2019 EXTR, 15% gain
2019 Medical Device company, sold 50% for a 53% gain
2019 DHI Corp, 46% gain
2019 Medical device company, (sold 80%), 69% 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
CSI Update, March 2020-Free Blog
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.
SYNC announced they are merging with QUMU. At first I thought this was a dumb move, but QUMU provides tools to support on-line video, which may work out after all if they can complete the deal.
https://finance.yahoo.com/news/synacor-reports-strong-fourth-quarter-210500493.html
ATEC continues to grow but is trading above my valuation. I should have sold in the high $7’s when I had the chance.
https://finance.yahoo.com/news/atec-announces-preliminary-first-quarter-130010697.html
AVID continues to do well, my valuation jumped to $18.71. Their subscriptions business continues to grow, but their storage business will be hurt by the economic impact of the virus.
https://finance.yahoo.com/news/avid-technology-issues-business-response-002010051.html
March was a tough month for sure. The virus whacked all of our stocks.
March 2020 Legacy Positions:
SYNC
Share cost $2.56
Current Price $1.02
Lifetime Gain (Loss) (60%)
YTD Loss 33%
Current Valuation $4.31
Price to Value ratio 24%
Prior Valuation $5.05
ATEC
Share cost $7.06
Current Price $3.45
Lifetime Loss 51%
YTD Loss 51%
Current Valuation $5.30
Price to Value ratio 65%
Prior Valuation $5.29
AVID
Share cost $8.35
Current Price $6.73
Lifetime gain -19%
YTD Loss 22%
Current Valuation $18.71
Price to Value ratio 36%
Prior Valuation $13.52
CSI Private Subscriber Update
Quad Graphics jumped on earnings last week and I sold my entire position for a 54% gain.
