Year-end Rally?

We went 9 up, 4 down last week. Our model portfolio year-to-date gain, however dropped .7% to 13.4% as AVSO.ob and IYXI.ob had substantial weekly drops. DWCH continued as our biggest dog followed by, MIVA, LINN.ob, ARIS.ob and OPTO.ob . Since the start of the year we are 11 up and 5 down.

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 was up $.15 to $13.13 last week. If Q3 earnings are good, as expected we could see new highs here. Now up 23%. HOLD

CAW-(Buy price $9.45, NEW Valuation $19.35 (was $18.40)). Closed up $.20 at $10.18. Yield about 3%. Valuation moved up to $19.35. Up 8% so far. BUY.

QADI-(Buy price $6.93, Valuation $13.73 (was $11.86). Closed at $8.50, up $.01. Yield about 1.2%. Trading at only 62% of valuation. Has $1.30 in cash also. Up 23% so far. HOLD.

PDLI-(Buy price $19.31, Valuation > $30)–Closed at $20.66, up $.28. Now up 7%. HOLD.

MIVA-(Buy price $3.80, Valuation $7.38 (was $9.10)). MIVA closed at $3.12, up $.03. Now down 18% 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 $2.45, up $.18, still a loser–down 33%. HOLD to see how this quarter turns out. Valuation gap is still huge, but declining.

INFT-(Buy price $4.11, Valuation $6.86 (was $7.32)). Up $.14 last week to $4.22. Still has $2.52 per share in cash. Price objective $5.50. Now up 3%. BUY.


ARIS.ob-(Buy price $2.06, Valuation $5.28 (was $5.21)). Closed at $1.90, down $.20 last week. This stock is still pretty illiquid so big moves are fairly meaningless at this point. Now down 8% so far. BUY if you can find some shares. Huge valuation gap.

Linn.ob-(Buy price $.36, Valuation $.66 (was $.79)). Closed at $.30, up $.01 last week. Still trading at only 45% of our current valuation. Down 17% 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 $1.23, up $.08. Still in the red with a 2% loss. BUY.

AVSO.ob-(Buy price $1.19, Valuation $3.36 (was $3.81)). Stock closed at $1.72, down $.15. Now up 45%. No news, just lack of interest. Still only trading at only 51% of our valuation. HOLD.

CTIG.ob-(Buy price $.27 ask, Valuation $1.05 (Was $.82)). Ask price dropped $.01 to $.31. Closed at $.30. Cash is $.28 per share. Up 15% 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 $.12 even at $2.39, up 25%. This is still very risky, but could be a real barnburner is they do what they say they are going to do. HOLD.


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