Datawatch Earnings

Announced this morning. They were an upside surprise! Stock is up to $4.38 up $.83 or 23%. Our valuation moved up to $9.20. Looks like there is still room to run–quite a bit. HOLD.

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4/28/2007 Update

Last week we went 7 up and 9 down again. LINN.ob holds first place on our “biggest dog” list (by far) followed by PARL, INFT, ILOG, BDR and ARIS.ob. For the week, 2007 year-to-date, and since we started this Blog in January 2006, our model portfolio is +2%,+12.7% and +30.0% respectively. Since inception we are now 15 stocks up and 6 down (3 of which is down less than 10%).

We actually went in the same direction as the market last week. We were up 2% this past week and are now up 12.7% so far in 2007. The DOW, NASDAQ and the S+P 500 all gained from .7% to 1.2% last week, and are all now up from 5.3% to 5.9% for the year. We are still are up more than double the averages.

Since inception we have closed out the following positions:

NTCT +44%
ONXS +11% (Buyout offer)
DTLK +41%
CAW +21% (Buyout offer)
IYXI.ob +44% (Buyout offer)
MOBI +47% (Buyout offer)

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

ILOG announced earnings last week. Our OB-abies continued to drift down–except for CTIG.ob which is now up 85%.

Spectranetics (SPNC-Recommended 9/2/2006)
Buy price $10.65, Valuation $18-$20
Down $.43 to $10.66 last week.
Short interest as of April 13th, rose again to 4.1 million shares from 3.36 million in March. Short interest was 1.8 million in December. We don’t get it at all, but the shorts are controlling the “vertical” as far as we can see–for now. Everything is going fine here. SPNC expects to file the CELLO (above-the-knee) 501k application with the FDA in less than 30 days. If approved (no reason to expect it will not be), this should be huge.
Now up .1% so far. BUY.

QAD Inc. (QADI-Recommended 6/14/2006)
Buy price $6.93, Valuation $15.92 (was $13.69 $13.73 and $11.86)
Closed at $9.60, down $.57.
No news. QAD finally paused in its upward climb.
Earnings due Thursday, May 17th after the close.
Trading at 60% of our valuation.
Up 39% so far. HOLD.

PDL BioPharma Inc. (PDLI-Recommended 5/21/2006)
Buy price $19.31, Valuation > $30
Closed at $25.76, up $1.63.
Earnings due out on May 2nd, after the close.
PDL also announced that they are moving forward on Nuvion trails based on results so far.
Activist investment firm Third Point LLC, owns 11.2 million shares or 9.7% of the company and has more than $200 million invested. They continue to exert pressure on PDL to improve shareholder value. This however, remains a very volatile stock.
Now up 33%. HOLD.

MIVA Inc. (MIVA-Recommended 3/18/2006)
Buy price $3.80, Valuation $7.37 (was $7.52, $7.38 and $9.10)
MIVA closed at $4.37, up $.03.
Earnings due out May 7th, after the close.
No news.
Now up 15%. HOLD.

DataWatch Corp. (DWCH-Recommended 2/12/2006)
Buy price $3.21 (averaged down from $3.66), Valuation $8.32 (was $7.50, $7.63, $9.31)
Closed at $3.55, up $.32 for the week.
Earnings scheduled for April 30th, before the close.
No other news.
Now up 11%. HOLD.

Inforte Corp. (INFT-Bought January 13, 2006)
Buy price $3.74 (averaged down from $4.11), Valuation $6.13 (was $6.95, $6.86)
UP! A big $.02 at $3.18 last week.
This IS ridiculous. Cash is 83% of the market cap.
Earnings are out on May 14th, after the close.
Has $2.64 per share in cash. Price objective $5.50.
Now down 15%. BUY.

RiT Technologies (RITT-Recommended 11/12/2006)
Buy price $1.00, Valuation $3.36 (Was $2.69)
Closed down another $.03 at $1.33 last week.
No news. Bought a little more of this last week at $1.35.
Earnings due out on May 3rd, before the open.
Up 33%. BUY.

Parlux Fragrances (PARL-Recommended 11/30/2006)
Buy price $6.12 (was $6.65 before double up), NEW Valuation $8.63 (Was $13.77)
PARL closed at $4.72, down $.19 last week.
No news last week and the stock continued to drift down. The new management has 2.2 million reasons to make this stock go up. Glenn Nussdorf paid $6 for his shares.
Down 23%. HOLD.

Blonder Tongue Laboratories (BDR-Recommended 3/4/2007)
Buy price $1.83, Valuation $5.12 (was $5.88).
Closed at $1.74 down $.17 for the week.
No news. Trading at 34% of our valuation.
Down 5%. BUY

ILOG SA (ILOG-recommended 3/26/2007)
Buy price $13.60, NEW Valuation $20.99 (was $20.52)
Closed at $12.77 last week, down $.96.
Earnings last week. Sales were up 7%, but profit was down from $.15 to $.04. So the stock tanked on 800 shares traded. Guidance was unchanged for revenues (up 17%+) but the outlook for profit was cut to flat vs. last year (note-their year ends 6/30). Our valuation went UP to $20.99.
Down 6%. BUY

Celebrate Express (BDAY-recommended 4/17/2007
Buy Price $8.82, Valuation $18.18
Up $.49 to $8.95 last week
BDAY announced some lay-offs last week to get more efficient. Good.
Up 6%. BUY

OB-abies (Bulletin Board Listed Stocks)

ARI Networks (ARIS.ob-Recommended 8/19/2006)
Buy price $2.06, Valuation $5.03 (was $5.28, $5.28, $5.21)
Closed at $2.02, up $.07 last week.
No news.
This stock is still illiquid, so price moves are fairly meaningless at this point.
Now down 2%. BUY. Still a Huge valuation gap here.

Lion Inc. (LINN.ob-Recommended 4/15/2006)
Buy price $.36, Valuation $.57 (was $.62, $.66 and before that-$.79)
Closed at $.18, down $.03 last week.
Now trading at only 32% of our current valuation.
We will give LION another quarter or two to see if they can turn things around.
Down 50%. HOLD until we get some revenue growth and stop losing money (same story as last quarter). I bought a little more on Friday at $.18.

OPTIO Software Inc. (OPTO.ob-Recommended 3/22/2006)
Buy price $1.25, Valuation $2.89 (was $2.89, $2.54 and 2.88)
Closed at $1.35, down $.11 last week.
Has cash of $.47 per share–35% of the market cap.
Still hoping we will see north of $2.00 this year.
8% gain so far. BUY.

Avatech Solutions Inc. (AVSO.ob-Bought November 28, 2005)
Buy price $1.19, Valuation $3.29 (was $2.69, $3.36, $3.81)
Stock closed at $1.37, down $.11.
No news. Bought a little more on Friday myself at $1.40.
Now up 15%. BUY.

CTI Holdings (CTIG.ob-Recommended 2/25/2006)
Buy price $.27 ask, Valuation $1.42 (Was $1.28 $1.13, $1.05, $.82)
Ask price moved up $.14 to $.50. Closed at $.45.
This is still trading at only 35% of our latest valuation.
No news.
Up 85% based on the ASK price. HOLD.

4/21/2007 Update–Pay-back

Last week we went 7 up and 9 down. LINN.ob holds first place on our “biggest dog” list (by far) followed by PARL, INFT, ARIS and our newest stock-BDAY. For the week, 2007 year-to-date, and since we started this Blog in January 2006, our model portfolio is -3.8,+10.7% and +27.7% respectively. Since inception we are now 16 stocks up and 5 down (1 of which is down less than 10%).

We paid for our big week last week with a 3.75 drop this past week and are now up 10.7% so far in 2007. The DOW, NASDAQ and the S+P 500 all gained from 1.4-2.8% last week, and are all now up from 4% to 4.7% for the year. We are definitely moving conversely to the averages the past few weeks, but still are up more than double the averages.

Since inception we have closed out the following positions:

NTCT +44%
ONXS +11% (Buyout offer)
DTLK +41%
CAW +21% (Buyout offer)
IYXI.ob +44% (Buyout offer)
MOBI +47% (Buyout offer)

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

SPNC announced earnings last week. PARL took it on the chin after their weak earnings report and our OB-abies got little attention as buyers ignored most of them.

Spectranetics (SPNC-Recommended 9/2/2006)
Buy price $10.65, Valuation $18-$20
Up $.19 to $11.09 last week.
Q1,revenues came in at $17.4 million, up 28% over the prior year, but below some analysts estimates of over $18 million. SPNC had a small loss ($65,000) after a non-cash stock compensation expense charge of $669,000. They reaffirmed annual guidance of revenues of $79-$82 million and net income to be about break-even (+-). Everything is going fine here. They also expect to file the CELLO (above-the-knee) 501k application with the FDA in the next 30 days. If approved (no reason to expect it will not be), this should be huge.
Now up 4% so far. BUY.

QAD Inc. (QADI-Recommended 6/14/2006)
Buy price $6.93, Valuation $15.92 (was $13.69 $13.73 and $11.86)
Closed at $10.17, up $.12.
No news. But volume continues to be good, along with the price.
Earnings due Thursday, May 17th after the close.
Trading at 64% of our valuation.
Up 47% so far. HOLD.

PDL BioPharma Inc. (PDLI-Recommended 5/21/2006)
Buy price $19.31, Valuation > $30
Closed at $24.13, down $.19.
Activist investment firm Third Point LLC, owns 11.2 million shares or 9.7% of the company. They continue to exert pressure on PDL to improve shareholder value. Another letter was sent to the CEO on April 17th. Looks like they are serious about unlocking the value here with over $200 million invested. This however, remains a very volatile stock.
Now up 25%. HOLD.

MIVA Inc. (MIVA-Recommended 3/18/2006)
Buy price $3.80, Valuation $7.37 (was $7.52, $7.38 and $9.10)
MIVA closed at $4.34, up $.13.
No news.
Now up 14%. HOLD.

DataWatch Corp. (DWCH-Recommended 2/12/2006)
Buy price $3.21 (averaged down from $3.66), Valuation $8.32 (was $7.50, $7.63, $9.31)
Closed at $3.23, down $.19 for the week.
Earnings scheduled for April 30th, before the close.
No other news.
Now up 1%. BUY.

Inforte Corp. (INFT-Bought January 13, 2006)
Buy price $3.74 (averaged down from $4.11), Valuation $6.13 (was $6.95, $6.86)
Closed down another $.09 at $3.16 last week.
This IS ridiculous. Cash is now 84% of the market cap.
Earnings are out on May 14th, after the close.
Has $2.64 per share in cash. Price objective $5.50.
Now down 15%. BUY.

RiT Technologies (RITT-Recommended 11/12/2006)
Buy price $1.00, Valuation $3.36 (Was $2.69)
Closed down another $.02 at $1.36 last week.
No news.
Up 36%. BUY.

Parlux Fragrances (PARL-Recommended 11/30/2006)
Buy price $6.12 (was $6.65 before double up), NEW Valuation $8.63 (Was $13.77)
PARL closed at $4.91, down $.86 last week.
Investors ran from PARL last week over the disappointing earnings report. Lost in this was the fact that they will remain listed on NASDAQ. The new management has 2.2 million reasons to make this stock go up. Glenn Nussdorf paid $6 for his shares.
Down 20%. HOLD.

Blonder Tongue Laboratories (BDR-Recommended 3/4/2007)
Buy price $1.83, Valuation $5.12 (was $5.88).
Closed at $1.91 up $.02 for the week.
No news. Trading at 37% of our valuation.
Up 4%. BUY

ILOG SA (ILOG-recommended 3/26/2007)
Buy price $13.60, Valuation $20.52
Closed at $13.73 last week, up $.17.
No news.
Up 2%. BUY

Celebrate Express (BDAY-recommended 4/17/2007
Buy Price $8.82, Valuation $18.18
No news last week.
The insider buying has been impressive of late. We bought more ourselves at $8.65. Volume has dried up and there appear to only sellers (small ones) around right now. May buy more next week
Down 4%. BUY

OB-abies (Bulletin Board Listed Stocks)

ARI Networks (ARIS.ob-Recommended 8/19/2006)
Buy price $2.06, Valuation $5.03 (was $5.28, $5.28, $5.21)
Closed at $1.95, down $.07 last week.
No news.
This stock is still illiquid, so price moves are fairly meaningless at this point.
Now down 5%. BUY. Still a Huge valuation gap here.

Lion Inc. (LINN.ob-Recommended 4/15/2006)
Buy price $.36, Valuation $.57 (was $.62, $.66 and before that-$.79)
Closed at $.21, down $.02 last week.
Now trading at only 40% of our current valuation.
We will give LION another quarter or two to see if they can turn things around.
Down 42%. HOLD until we get some revenue growth and stop losing money (same story as last quarter).

OPTIO Software Inc. (OPTO.ob-Recommended 3/22/2006)
Buy price $1.25, Valuation $2.89 (was $2.89, $2.54 and 2.88)
Closed at $1.43, down $.07 last week.
Has cash of $.47 per share–33% of the market cap.
Still hoping we will see north of $2.00 this year.
14% gain so far. HOLD.

Avatech Solutions Inc. (AVSO.ob-Bought November 28, 2005)
Buy price $1.19, Valuation $3.29 (was $2.69, $3.36, $3.81)
Stock closed at $1.48, up $.02.
No news.
Now up 24%. HOLD.

CTI Holdings (CTIG.ob-Recommended 2/25/2006)
Buy price $.27 ask, Valuation $1.28 (Was $1.28 $1.13, $1.05, $.82)
Ask price moved up $.01 to $.36. Closed at $.35.
This is now trading at only 28% of our latest valuation.
No news.
Up 33% based on the ASK price. HOLD.

Celebrate Express, Inc. (NASDAQ–BDAY)

Celebrate Express, Inc. (NASDAQ–BDAY)
Valuation-$18.18
Closing price April 18, 2007-$8.82

This one is a bit different for us, as BDAY is a retailer, but like Amazon, it only sells online. BDAY is recovering from a distribution snafu last year. Management now says that this is behind them and it is onward and upward from here.

Q3 results (2/28/2007) showed an 11% sales drop and a $137,000 loss (down from the prior year).There a bit under 8 million shares outstanding and they reported 55% gross margins and have $2.78 a share in cash (after a special $1.25 per share dividend that went to record holders as of April 12, 2007). We are betting on BDAY rebounding from their distribution woes and winning customers back (although this will take some marketing dollars to do). Q3 is also historically one of their lowest sales volume quarters.

Our valuation is based on $82 million in annual sales (they should easily beat this) and a small annual book loss.

One director and another insider have been buying a lot of shares from $8.75 to $10 in 2007 so far.

We bought some this week at $8.85. Average daily trading volume has been nearly 100,000 shares a day, although the past few days it has been closer to 30,000 shares.

We think anything under $9.00 is a good price.

BDAY is trading at 49% of our valuation.

About Celebrate Express, Inc.
Celebrate Express is a leading online and catalog retailer of celebration products serving families with young children. The Company currently operates two brands: Birthday Express markets children’s party products, and Costume Express markets costumes and accessories. The Company utilizes its branded website Celebrateexpress.com, complemented by its branded catalogs, to offer products as complete coordinated solutions. The Company’s goal is to help families celebrate the special moments in their lives. For more information, please visit http://www.celebrateexpress.com.

4/14/2007 Update-Very nice week-Up 8.6%

Last week we went 9 up, 6 down and 1 even. LINN.ob holds first place on our “biggest dog” list (by far) followed by INFT, PARL, and ARIS. For the week, 2007 year-to-date, and since we started this Blog in January 2006, our model portfolio is +8.6,+14.4% and +32.0% respectively. Since inception we are now 17 stocks up and 4 down (2 of which are down less than 10%).

Last week is long forgotten now as we booked a 8.6% gain last week and are up 14.4% so far in 2007, while the DOW, NASDAQ and the S+P 500 all gained less than 1% last week, and are all now up from 1.2% to 3.2% for the year.

Since inception we have closed out the following positions:

NTCT +44%
ONXS +11% (Buyout offer)
DTLK +41%
CAW +21% (Buyout offer)
IYXI.ob +44% (Buyout offer)
MOBI +47% (Buyout offer-this week)

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

Great week as we got a buy-out on MOBI for a 47% gain and PDLI, DWCH and QADI had big gains.

Spectranetics (SPNC-Recommended 9/2/2006)
Buy price $10.65, Valuation $18-$20
Down $.03 to $10.90 last week.
This is a great company with great prospects that is executing well. Earnings are out next week on April 19th before the market opens. We expect good sales growth. Bottom line will not be great, but that is good at this point–investing earnings to grow their manufacturing capacity, sales force, installed base of lasers, doctor training and laser capability should lead to big gains ahead.
Now up 2% so far. BUY.

QAD Inc. (QADI-Recommended 6/14/2006)
Buy price $6.93, Valuation $15.92 (was $13.69 $13.73 and $11.86)
Closed at $10.05, up $.76.
No news. But volume continues to be good, along with the price.
Trading at 63% of our valuation.
Up 45% so far. HOLD.

PDL BioPharma Inc. (PDLI-Recommended 5/21/2006)
Buy price $19.31, Valuation > $30
Closed at $24.32, up $2.59.
Activist investment firm Third Point LLC, upped their stake by 1.8 million shares, purchased in the $21-$22 range in April. They now own 11.2 million shares or 9.7% of the company. They also wrote a scathing letter to PDL calling for the firing of the CEO. It was pretty nasty. Looks like they are serious about unlocking the value here with over $200 million invested. This however, remains a very volatile stock.
No news last week.
Now up 26%. HOLD.

MIVA Inc. (MIVA-Recommended 3/18/2006)
Buy price $3.80, Valuation $7.37 (was $7.52, $7.38 and $9.10)
MIVA closed at $4.21, up $.20.
Google made an offer to buy DoubleClick for almost 3X what a private equity firm bought it for in 2005. Maybe we will see some sympathy reaction in the price of MIVA.
Now up 11%. HOLD.

DataWatch Corp. (DWCH-Recommended 2/12/2006)
Buy price $3.21 (averaged down from $3.66), Valuation $8.32 (was $7.50, $7.63, $9.31)
Closed at $3.42, up $.53 or 18% for the week.
No news.
Now up 7%. BUY.

Inforte Corp. (INFT-Bought January 13, 2006)
Buy price $.74 (averaed down from $4.11), Valuation $6.13 (was $6.95, $6.86)
Closed down another $.11 at $3.25 last week.
This is getting ridiculous. Cash is now 81% of the market cap.
Has $2.64 per share in cash. Price objective $5.50.
Now down 13%. BUY.

Mobius Management Systems (MOBI-Recommended 11/12/2006)
Buy price $6.68 (averaged down from $7.08), Valuation $12.82, was $12.69
Up $2.34 to $9.80 last week.
Buyout offer made at $10.05 per share.
Up 47%. SOLD.

RiT Technologies (RITT-Recommended 11/12/2006)
Buy price $1.00, Valuation $3.36 (Was $2.69)
Closed down another $.19 at $1.38 last week.
No news.
As we cautioned 2 weeks ago, the fairly quick run up in price made us cautious and sure enough we had two bad weeks here. But at 41% of our valuation, we are buying more here.
Up 38%. BUY.

Parlux Fragrances (PARL-Recommended 11/30/2006)
Buy price $6.12 (was $6.65 before double up), NEW Valuation $8.63 (Was $13.77)
PARL closed at $5.77, up $.54 last week.
The good news was that they got their reprieve from the SEC, and then filed the 12/31/2006 10Q on time on Friday. So they are now up to date with the SEC and the delisting appears to old news. The bad news was that their results stunk up the place. Sales were good, up 15% from the prior year and their balance sheet is in much better shape after the Perry Ellis asset sale, but margins fell to 42% from 50% and they had an operating loss of $8 million compared to operating income of $2.6 million in the prior year. Our valuation fell to $8.63. So at 67% of our valuation this is not a buy anymore, but not a sell either. We are still going to hold this one as we suspect that the lousy P+L is the result of the distraction of the proxy contest, so house cleaning of the books, etc. But if margins do not improve, this one may be history for us.
Down 6%. HOLD.

Blonder Tongue Laboratories (BDR-Recommended 3/4/2007)
Buy price $1.83, Valuation $5.12 (was $5.88).
Closed at $1.89 up $.13 for the week.
No news. Trading at 37% of our valuation.
Up 3%. BUY

ILOG SA (ILOG-recommended 3/26/2007)
Buy price $13.60, Valuation $20.52
Closed at $13.73 last week, down $.33.
No news.
Up 1%. HOLD

OB-abies (Bulletin Board Listed Stocks)

ARI Networks (ARIS.ob-Recommended 8/19/2006)
Buy price $2.06, Valuation $5.03 (was $5.28, $5.28, $5.21)
Closed at $2.02, up $.07 last week.
This stock is still illiquid, so price moves are fairly meaningless at this point.
Now down 2%. BUY. Still a Huge valuation gap here.

Lion Inc. (LINN.ob-Recommended 4/15/2006)
Buy price $.36, Valuation $.57 (was $.62, $.66 and before that-$.79)
Closed at $.23, up $.01 last week.
Now trading at only 40% of our current valuation.
We will give LION another quarter or two to see if they can turn things around. They are still “cheap” compared to our valuation (and unfortunately getting cheaper).
Down 36%. HOLD until we get some revenue growth and stop losing money (same story as last quarter).

OPTIO Software Inc. (OPTO.ob-Recommended 3/22/2006)
Buy price $1.25, Valuation $2.89 (was $2.89, $2.54 and 2.88)
Closed at $1.50, unchanged last week.
Has cash of $.47 per share–31% of the market cap.
Still hoping we will see north of $2.00 this year.
20% gain so far. HOLD.

Avatech Solutions Inc. (AVSO.ob-Bought November 28, 2005)
Buy price $1.19, Valuation $3.29 (was $2.69, $3.36, $3.81)
Stock closed at $1.46, down $.09.
No news.
Now up 23%. HOLD.

CTI Holdings (CTIG.ob-Recommended 2/25/2006)
Buy price $.27 ask, Valuation $1.28 (Was $1.28 $1.13, $1.05, $.82)
Ask price fell $.02 to $.35. Closed at $.34.
This is now trading at only 27% of our latest valuation.
Up 30% based on the ASK price. BUY

4/6/2007 Update

Last week we went 8 up and 8 down. LINN.ob holds first place on our “biggest dog” list (by far) followed by INFT, PARL, DWCH, ARIS, and BDR. For the week, 2007 year-to-date, and since we started this Blog in January 2006, our model portfolio is (2.95%),+5.8% and +22.1% respectively. Since inception we are 15 stocks up and 6 down (3 of which are down less than 10%).

We paid our dues last week with a 2.95% loss last week and are up 5.8% so far in 2007, while the DOW, NASDAQ and the S+P 500 all surged again last week by 1.6% to 2.1%, and are all now up from .8% to 2.3% for the year.

Since inception we have closed out the following positions:

NTCT +44%
ONXS +11% (Buyout offer)
DTLK +41%
CAW +21% (Buyout offer)
IYXI.ob +44% (Buyout offer)

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

Interesting week. CTIG.ob,BDR and OPTO.ob all announced earnings last week and DWCH had some interesting news.

Spectranetics (SPNC-Recommended 9/2/2006)
Buy price $10.65, Valuation $18-$20
Up $.23 to $10.93 last week.
This is a great company with great prospects that is executing well. SPNC picked up a Buy recommendation from SunTrust last week, but the price target was a measley $13. SPNC will be attending a ST conference on April 11th, so hopefully we will see an increase in the price target shortly after that.
Now up 3% so far. BUY.

QAD Inc. (QADI-Recommended 6/14/2006)
Buy price $6.93, Valuation $15.92 (was $13.69 $13.73 and $11.86)
Closed at $9.29, up $.19.
No news. But volume seems to picking up, along with the price.
Trading at 58% of our valuation.
Up 34% so far. BUY.

PDL BioPharma Inc. (PDLI-Recommended 5/21/2006)
Buy price $19.31, Valuation > $30
Closed at $21.73, up $.03.
Activist investment firm Third Point LLC, which owns 8 million shares or 7.5% of the company, continues to lurk in the background. We think that PDLI is a bargain at this price. This however, remains a very volatile stock.
No news last week.
Now up 13%. HOLD.

MIVA Inc. (MIVA-Recommended 3/18/2006)
Buy price $3.80, Valuation $7.37 (was $7.52, $7.38 and $9.10)
MIVA closed at $4.01, up $.17.
No news.
Now up 6%. HOLD.

DataWatch Corp. (DWCH-Recommended 2/12/2006)
Buy price $3.21 (averaged down from $3.66), Valuation $8.32 (was $7.50, $7.63, $9.31)
Closed at $2.89, down $.01 for the week.
A 13D was filed on March 28th by Ray Huger the developer of the Monarch software that DWCH sells. He bought 47,000 shares at $2.98 to $3.08 from February 28 to March 22. He now holds 280,800 shares or 5.1%. Maybe he knows something. We bought a little more last week too.
Now down 10%. BUY.

Inforte Corp. (INFT-Bought January 13, 2006)
Buy price $4.11, Valuation $6.13 (was $6.95, $6.86)
Closed down $.13 at $3.36 last week.
No news. Time to double up on this one too–avg. price will be $3.74.
Has $2.64 per share in cash. Price objective $5.50.
Now down 18%. BUY.

Mobius Management Systems (MOBI-Recommended 11/12/2006)
Buy price $6.68 (averaged down from $7.08), Valuation $12.82, was $12.69
Up $.11 to $7.46 last week.
No news.
Up 12%. HOLD.

RiT Technologies (RITT-Recommended 11/12/2006)
Buy price $1.00, Valuation $3.36 (Was $2.69)
Closed down $.19 at $1.57 last week.
No news.
As we cautioned last week, the fairly quick run up in price made us cautious and sure enough we had a bad week here.
Up 57%. HOLD.

Parlux Fragrances (PARL-Recommended 11/30/2006)
Buy price $6.12 (was $6.65 before double up), Valuation $13.77)
PARL closed at $5.23, down $.35 last week.
They are asking the SEC for another extention for their December 31, numbers (Q3)until April 16. Our guess is that they will get it. No news on this last week. We think the stock price will continue to vacillate for a while until they get fully compliant on their filings.
Down 15%. BUY.

Blonder Tongue Laboratories (BDR-Recommended 3/4/2007)
Buy price $1.83, NEW Valuation $5.12 (was $5.88).
Closed at $1.76 down $.19 for the week.
Earnings last week were “OK”. Our valuation fell to $5.12, but our original valuation was based on estimates of all the transactions they were in the middle of. We still like this stock and bought more ourselves last week. Trading at 34% of our valuation.
Down 4%. BUY

ILOG SA (ILOG-recommended 3/26/2007)
Buy price $13.60, Valuation $20.52
Closed at $14.06 last week, up $.49.
No news.
Up 3%. HOLD

OB-abies (Bulletin Board Listed Stocks)

ARI Networks (ARIS.ob-Recommended 8/19/2006)
Buy price $2.06, Valuation $5.03 (was $5.28, $5.28, $5.21)
Closed at $1.95, up $.04 last week.
This stock is still illiquid, so price moves are fairly meaningless at this point.
Now down 5%. BUY. Still a Huge valuation gap here.

Lion Inc. (LINN.ob-Recommended 4/15/2006)
Buy price $.36, Valuation $.57 (was $.62, $.66 and before that-$.79)
Closed at $.22, up $.02 last week.
Now trading at only 39% of our current valuation.
We will give LION another quarter or two to see if they can turn things around. They are still “cheap” compared to our valuation (and unfortunately getting cheaper).
Down 44%. HOLD until we get some revenue growth and stop losing money (same story as last quarter).

OPTIO Software Inc. (OPTO.ob-Recommended 3/22/2006)
Buy price $1.25, Valuation $2.89 (was $2.54 and 2.88)
Closed at $1.50, down $.09 last week.
OPTIO announced earnings last week. They lost $.01 per share (made $.01 for the year) and sales fell 9% from the YOY quarter, but OPTIO has been successfully transitioning from a license sales model to a subscription based model and the entire sales decline was from license sales. Subscription sales and Service sales increased from the prior year. Our valuation stayed the same at $2.89. Cash went up to $.47 per share–31% of the market cap.
Still hoping we will see north of $2.00 this year.
20% gain so far. HOLD.

Avatech Solutions Inc. (AVSO.ob-Bought November 28, 2005)
Buy price $1.19, Valuation $3.29 (was $2.69, $3.36, $3.81)
Stock closed at $1.55, down $.05.
No news.
Now up 30%. HOLD.

CTI Holdings (CTIG.ob-Recommended 2/25/2006)
Buy price $.27 ask, NEW Valuation $1.28 (Was $1.28 $1.13, $1.05, $.82)
Ask price fell $.02 to $.37. Closed at $.35.
Based of CTIG’s pro-forma numbers (for the Ryder acquisition) our valuation went up to $1.42 per share. Their reported numbers for the quarter and year ended 12/31/2006 really don’t mean much at this point as none of the Ryder income was included.
This is now trading at only 26% of our latest valuation. A screaming BUY.
Up 37% based on the ASK price. BUY