ARI (ARIS.ob)–$2.06 last

This one is as “thin” as they get. I think it took me over a month to buy 15,000 shares.

But, ARI continues to grow sales and earnings every year, has gross margins over 80%, has net-cash of $.20 a share and a valuation of $5.21 a share. It is also profitable. So it is trading at 40% of valuation.

ARI does online catalogues and related services for manufactured equipment makers. They keep spewing out new customer and expanded customer relationship press releases and the the stock does nothing. This is just a steady, 3 yards and a cloud of dust growth company so far. But it is so far undervalued that I just couldn’t not recommend this anymore. When it is discovered, it should be a 50-100% gainer. BUY

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Dog days of Summer

Sorry we missed our update last week (don’t ask). We will update performance from 2 weeks ago, today.

We broke even over the last 2 weeks, 5 up, 5 down and 1 even. However, our model portfolio year-to-date gain dropped 3% to a 15% gain, mostly due to MIVA and OPTO.ob. MIVA is still our biggest dog, followed by DWCH, LINN.ob, PDLI and then OPTO.ob. Since the start of the year we are 9 up and 5 down. No buys or sells this past 2 weeks.

The model portfolio assumes $10,000 invested in each stock, less $10 commission each way (TD Ameritrade rate).

CAW-(Buy price $9.45, Valuation $18.40). Closed up $.27 for the week at $10.00. Yield about 3%. A group called Costa Brava Partnership is offering to buy the Class A stock at a “substantial premium”. The company has rejected this offer. The company is “in-play”. CB owns 7.9% of the stock. No news last week on anything. Up 6% so far. HOLD.

QADI-(Buy price $6.93, Valuation $13.73 (was $11.86). Closed at $7.61, up $.01. QADI released earning last week–not bad. The valuation has moved up to $13.73, so at the current price it is trading at only 55% of valuation. Has $1.30 in cash also. Up 10% so far. BUY.

PDLI-(Buy price $19.31, Valuation > $30)–Closed at $18.39, up $.95 from last week. Now down only 5%. Volatile stock. BUY.

MIVA-(Buy price $3.80, Valuation $7.38 (was $9.10)). MIVA closed at $2.35, down $.48. Now down 38% on this one. MIVA released Q2 results week before last. They reported a whopping $73 million loss ($2.29 a share), but after deducting a BS goodwill write-off of $64 million and another $5.8 million of stock expense, severance and restucturing charges, they only lost about $3.5 million. This still stinks. The valuation sank to $7.38 from the previous $9.10, but the stock is still selling at only 32% of its valuation–and it has $1.16 a share in cash (49% of its market value). The risk here of course that the Googles and other search engines continue to eat MIVA’s lunch (like Walmart did to regional retailers). But at this price, I will be in there buying on Monday. BUY.

Datawatch-(Buy price $3.66, Valuation $7.63 (was $9.31)). Closed at $2.85, down $.11 from last week, still a loser–down 22%. HOLD.

Inforte-(Buy price $4.11, Valuation $6.86 (was $7.32)). Up $.22 to $4.22 last week. Still has $2.52 per share in cash and valuation only fell a little, but lowering our price objective to $5.50. Now up 3%. BUY.

OB-abies

Linn.ob-(Buy price $.36, Valuation $.66 (was $.79)). Closed at $.31, up $.02. Still trading at less than 50% of our current valuation. Down 14% YTD. HOLD until we get some revenue growth and stop losing money.

OPTO.ob-(Buy price $1.25, Valuation $2.88). Closed at $1.20, down $.10. They just keep announcing new customers and the market yawns and bids up Yahoo and Amazon. I’ll continue to skip those and stay with OPTO. Now down 4% to date. BUY.

AVSO.ob-(Buy price $1.19, Valuation $3.81). Stock closed at $1.8), down $.09 from $1.89. Now only up 51%. Wainting on year-end results for AVSO. Could be burdened with some acquisition and capital raising charges, but we expect to see some good operating results. Still only trading at 50% of our valuation. BUY.

CTIG.ob-(Buy price $.27 ask, Valuation $1.05 (Was $.82)). Ask price fell to $.37 (down $.05). Closed at $.34. Cash is $.28 per share. CTIG realeased earning also. Not great but (sales down a bit and had a book loss of $.01 per share) the valuation increased to $1.05 and net cash was $.26 per share. Up 37% (based on asked price). If you own this HOLD. If you don’t-BUY.

IYXI.ob-(Buy price $1.91, Valuation–over $3.00). Closed at same price as 2 weeks ago– $2.60, still up 36% so far. HOLD

Mixed week

Although our losers outnumbered our winners last week, our model portfolio year-to-date gain nudged up 1% to 18% due to decent gains in AVSO.ob and IYXI.ob. MIVA is still our biggest dog, followed by Linn.ob, DWCH, PDLI and then INFT. Last week we had 2 up, 8 down and 1 even. Since the start of the year we are 9 up and 5 down. No buys or sells this past week.
Our model portfolio based on the stocks in this Blog is up 18% so far this year (up 1% from last week). This model portfolio assumes $10,000 invested in each stock, less $10 commission each way (TD Ameritrade rate).

CAW-(Buy price $9.45, Valuation $18.40). Closed down $.02 for the week at $9.73. Yield about 3%. A group called Costa Brava Partnership is offering to buy the Class A stock at a “substantial premium”. The company has rejected this offer. The company is “in-play”. CB owns 7.9% of the stock. No news last week on anything. Up 3% so far. HOLD.

QADI-(Buy price $6.93, Valuaton $11.86). Closed at $7.60, down $.03. Up 10% so far. HOLD.

PDLI-(Buy price $19.31, Valuation > $30)–Closed at $17.44, down $.93 from last week. Now down 10%. PDLI announced earnings last week. GAAP loss, Non-GAAP profit. They are now generating $200 million a year in royalties which alone is almost worth the current market cap. They lost one clinical candidate that they acquired last year–don’t see this as a big deal. Big drugs in the pipeline, royalties are growing. This is still a BUY.

MIVA-(Buy price $3.80, Valuation $9.10). MIVA closed at $2.83, down $.11 from last week. Now down 26% on this one. HOLD.

Datawatch-(Buy price $3.66, Valuation $7.63 (was $9.31). Closed at $2.96, down $.09 from last week, still a loser–down 19%. HOLD.

Inforte-(Buy price $4.11, Valuation $6.86 (was $7.32). Down $.25 to $4.00 last week. Still has $2.52 per share in cash and valuation only fell a little, but lowering our price objective to $5.50. Now down 3%. BUY.

OB-abies

Linn.ob-(Buy price $.36, Valuation $.66 (was $.79). Closed at $.29, even on the week. Linn announced earnings last week, had a small loss of about $150,000, excluding special items. Volume in the stock soared last week and we saw some sizable bids (like 80,000 shares) which is encouraging. Still trading at less than 50% of our current valuation. Down 19% YTD. HOLD until we get some revenue growth and stop losing money.

OPTO.ob-(Buy price $1.25, Valuation $2.88). Closed at $1.30, down $.10 from last week. Now up 4% to date. HOLD.

AVSO.ob-(Buy price $1.19, Valuation $3.81). Stock rebounded last week to $1.89, up $.26 from $1.53. Now only up 59%. Not as cheap as last week, but still only trading at 50% of our valuation. BUY.

CTIG.ob-(Buy price $.27 ask, Valuation $.82). Ask price fell to $.42 (down $.02) last week. Closed at $.42. Cash is $.28 per share. Up 56% (based on asked price). HOLD.

IYXI.ob-(Buy price $1.91, Valuation–over $3.00). Closed up $.11 from last week at $2.60, up 36% so far. HOLD