Sometimes good things come in bunches. Even in a holiday shortened week we tacked on 6% to our 2006 gain. With “only” a 15.4% gain we still managed to beat NASDAQ and the S+P 500, but not the roaring DOW. Not a great year by our standards, and below the 25% we have averaged over the previous 15 years, but at least respectable.
Last week we went 11 up, 3 down and 1 even last week. DWCH is still our biggest dog followed by PARL, MIVA, INFT, LINN.ob MOBI and ARIS.ob. For the year we ended at 12 stocks up and 7 down. We sold 4 stocks (NTCT, ONXS, DTLK, CAW) for an average gain of 28%.
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). Up $.10 to $11.29 last week. No news. Shorts are still mucking around with SPNC. Up 6% so far. HOLD.
QADI-(Buy price $6.93, Valuation $13.69 (was $13.73 and $11.86). Closed at $8.39, up $.33. Trading at only 61% of valuation. Has $1.03 in cash also. Up 21% so far. HOLD.
PDLI-(Buy price $19.31, Valuation > $30)–Closed at $20.14, down $.19. No news. Now up 4%. BUY.
MIVA-(Buy price $3.80, Valuation $7.52 (was $7.38 and $9.10)). MIVA closed at $3.38, down $.09. No news. Now down 11%. HOLD.
DWCH-(Buy price $3.66, NEW Valuation $7.50 (was $7.63, $9.31)). Closed at $2.60, down $.02, now down 29%. HOLD.
INFT-(Buy price $4.11, Valuation $6.95 (was $6.86)). Up $.04 to $3.76. Still has $2.52 per share in cash. Price objective $5.50. Now down 9%. BUY.
MOBI-(Buy price $7.08, Valuation $12.69). Up $.12 to $6.65. No news. Down 6%. BUY.
RITT-(Buy price $1.00, Valuation $2.69). Closed up $.29 at $1.42 last week. On Friday it even got up to $1.57 but couldn’t hold there. Looks like some of the value here is starting to be recognized. Let’s hope next week brings more of the same. Up 42%. HOLD.
PARL-(Buy price $6.65, Valuation $13.77). PARL closed at $5.57, up $.22 last week. January could bring some real action as Mr. Nussdorf trys to replace the current management. There seems to be too many catalysts for this to stay down for long. Down 16%. This remains a BUY.
ARIS.ob-(Buy price $2.06, Valuation $5.28 (was $5.28, $5.21)). Closed at $2.00, up $.05 last week. This stock is still illiquid, so price moves are fairly meaningless at this point. Now down 3% so far. BUY if you can find some shares. Huge valuation gap.
Linn.ob-(Buy price $.36, Valuation $.62 (was $.66 and before that-$.79)). Closed at $.33, up $.03 last week. Still trading at only 53% of our current valuation. Down 8% YTD. HOLD until we get some revenue growth and stop losing money (same story as last quarter).
OPTO.ob-(Buy price $1.25, NEW Valuation $2.89 (was $2.54 and 2.88)). Closed at $1.45, up $.02. Has $.44 in cash per share also. So now we have a 16% gain. HOLD.
AVSO.ob-(Buy price $1.19, Valuation $2.69 (was $3.36, $3.81)). Stock closed at $1.50, unchanged. Now up 26%. No news. HOLD.
CTIG.ob-(Buy price $.27 ask, Valuation $1.13 (Was $1.05, $.82)). Ask price jumped $.04 to $.32. Closed at $.30. Cash is (was) $.24 per share. Last Friday CTI announced the purchase of Ryder Systems LTD. an international provider of electronic and on-line billing solutions and developer of VoIP business applications. On Friday they filed an 8-K, with details of the financing they got to fund the $11 million purchase–but still no details of what they bought. Price action last week is either some rebound from tax selling, or maybe someone knows what they bought–will have to wait to see. Now up 19% so far (based on ask price). HOLD until we see what we just bought.
IYXI.ob-(Buy price $1.91, Valuation–over $3.00). Closed up $.15 at $2.33, up 22% to date. No news on the “take-over”, or the pay-off of their bank debt which was supposed to happen by the end of the year. Price action on Friday looked good, but no info to go on yet. HOLD.