Summer vacation last week.
We went 5 and 7 over the last 2 weeks. While the markets in general have been doing well over the last couple of weeks, this has not translated to our mini-cap stocks—yet. Our model portfolio year-to-date gain dropped .8% to a 14.2% gain–still better than all the indexes, but not where we want to be. MIVA is still our biggest dog, followed by DWCH, LINN.ob. Since the start of the year we are 11 up and 4 down.
The model portfolio assumes $10,000 invested in each stock, less $10 commission each way (TD Ameritrade rate).
ARIS-(Buy price $2.06, Valuation $5.21). Closed at $2.05, down $.01. Announced another expanded customer relationship and nothing happened. All these customer wins should translate into continued revenue and earnings improvements. At some point investors will take notice and this will take-off–we believe. Down .5% so far. BUY if you can find some shares.
CAW-(Buy price $9.45, Valuation $18.40). Closed down $.01 at $9.99. 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 $7.60, down $.01. 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 $19.84, up $1.45. Now up 3%. Nice to be in the plus column on this one finally. News last week that one drug partnership was canceled, but the stock went up. I think the expectation is that expenses will be reduced and profitability will increase. HOLD.
MIVA-(Buy price $3.80, Valuation $7.38 (was $9.10)). MIVA closed at $2.54, up $.19. Now down 33% on this one. No news. BUY.
Datawatch-(Buy price $3.66, Valuation $7.63 (was $9.31)). Closed at $2.93, up $.08, still a loser–down 20%. HOLD.
Inforte-(Buy price $4.11, Valuation $6.86 (was $7.32)). Down $.07 to $4.15. Still has $2.52 per share in cash and valuation only fell a little, but lowering our price objective to $5.50. Now up 1%. BUY.
Linn.ob-(Buy price $.36, Valuation $.66 (was $.79)). Closed at $.32, up $.01. Still trading at less than 50% of our current valuation. Down 11% YTD. Volume seems to be picking up and we are still seeing some sizable bids for 50,000–75,000 shares from time-to-time. HOLD until we get some revenue growth and stop losing money.
OPTO.ob-(Buy price $1.25, Valuation $2.88). Closed at $1.40, up $.20. Now up 12% to date. HOLD.
AVSO.ob-(Buy price $1.19, Valuation $3.81). Stock closed at $1.71), down $.09 from $1.80. Now only up 44%. Waiting 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 stayed at $.37. Closed at $.34. Cash is $.28 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 down $.10 at $2.50, still up 31% so far. IYXI released earnings last week. Another sizable loss-$9.8 million (it did have some special charges related to 2 pending acquisitions in there of about $3 million and non-cash stuff of another $2 million). Their bank debt is high and they have some issues there. Revenues were up 137% to $20.1 million. But if their predictions come true–profits in Q4 and $140 million in revenue next year this should soar. Risky because of the continued losses and debt load so HOLD.