Last week started out good, then the markets went back to the pattern of the last few months and crapped out on Thursday and Friday.
We went 7 up, 5 down and 1 even this past week–again. But our model portfolio year-to-date gain, inched up (.8%) to 11.8%. DWCH took the honors as our biggest dog after MIVA’s pre-announcement last week, followed by, LINN.ob., OPTO.ob, ARIS.ob and PDLI. These last 3 are down less than 5%. Since the start of the year we are 10 up and 6 down. PDLI dropped back into the red again last week.
The model portfolio assumes $10,000 invested in each stock, less $10 commission each way (TD Ameritrade rate).
SPNC-(Buy price $10.65, Valuation $18-$20). Price continued up to $11.67, up $.42 last week. Now up 10%. SPNC presented at the AG Edwards conference on September 20th at 10 am EST. Not much reaction to it in the stock price. HOLD
CAW-(Buy price $9.45, Valuation $18.40). Closed up $.03 at $9.83. Yield about 3%. A group called Costa Brava Partnership offerred to buy the Class A stock at a “substantial premium”. The company has rejected this offer. CB owns 7.9% of the stock. I expect earnings this quarter to look very good compared to last year. Up 4% so far. HOLD.
QADI-(Buy price $6.93, Valuation $13.73 (was $11.86). Closed at $8.00, up $.58. QADI announced an acquisition last week. Not a lot of money and no financial info on it. But at least they are starting to do something and get a little attention. Yield about 1.2%. Trading at only 58% of valuation. Has $1.30 in cash also. Up 15% so far. HOLD.
PDLI-(Buy price $19.31, Valuation > $30)–Closed at $18.76, down $.60. Annoying action in this stock. Up, down, up, down. Now down 3%. HOLD.
MIVA-(Buy price $3.80, Valuation $7.38 (was $9.10)). MIVA closed at $3.15, up $.35. See our previous post about their good news last week. Now down 17% to date. HOLD until we see their full earnings results for the quarter and update our valuation.
DWCH-(Buy price $3.66, Valuation $7.63 (was $9.31)). Closed at $2.68, down $.11, still a loser–down 27%. HOLD.
INFT-(Buy price $4.11, Valuation $6.86 (was $7.32)). Up $.05 last week to $4.19. Still has $2.52 per share in cash. Price objective $5.50. Now up about 2%. HOLD.
ARIS.ob-(Buy price $2.06, Valuation $5.21). Closed at $2.00, down $.05 last week. Down 3% so far. BUY if you can find some shares. Huge valuation gap.
Linn.ob-(Buy price $.36, Valuation $.66 (was $.79)). Closed at $.31, even for the week. Still trading at less than 50% of our current valuation. Announced some new customer wins last week and hopefully we will see their financial results start turning around soon. Down 14% YTD. HOLD until we get some revenue growth and stop losing money.
OPTO.ob-(Buy price $1.25, Valuation $2.54 (was 2.88)). Closed at $1.21, up $.01. Now down 3% to date. Got up to $1.30 last week, until Friday afternoon–then swooned. HOLD.
AVSO.ob-(Buy price $1.19, Valuation $3.81). Stock closed at $1.69, up $.04. Now up 42%. Year-end earnings are out on Sept. 28th. Could be burdened with some acquisition and capital raising charges, but we expect to see some good operating results. Still only trading at less than 50% of our valuation. BUY.
CTIG.ob-(Buy price $.27 ask, Valuation $1.05 (Was $.82)). Ask price dropped $.03 to $.32. Closed at $.31. Cash is $.28 per share. Up 19% so far (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 $.04 at $2.50, still up 31% so far. HOLD.