Cheap Stock Weekly Update June 30th 2014

We were dead even last week and are now up 6.7% for the year. The DOW was down .6% and NASDAQ was up .7%. For the year, the DOW is up 1.7% and NASDAQ is up 5.3%

SYNC had some activist news.

Some of our stocks are just stupid cheap—compared to their net cash on hand per share divided by their stock price.

Check this list:

UNTD 46%
CCUR 30%
SIGM 51%
MRVC 16%
SYNC 45%

PRSS, MRVC, DAEG, EXTR and UNTD can still be bought.

Last week we went 8 stocks up and 6 down. Since inception we are now 68 stocks up and 17 down for an 80% winning percentage (80% is our target win %). Of our closed-out positions 59 have been winners and 13 have been losers for an 82% win percentage and a 34% average net gain per position.

Since our beginning, we have closed out the following positions:  Continue reading

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Cheap Stock Weekly Update June 23rd 2014

We were up .6% last week and are now up 6.7% for the year. The DOW was up 1% and NASDAQ was up 1.3%. For the year, the DOW is up 2.2% and NASDAQ is up 4.6%

DAEG earnings last week and CTIG announcement too.

Some of our stocks are just stupid cheap—compared to their net cash on hand per share divided by their stock price.

Check this list:

UNTD 49%
CCUR 28%
SIGM 53%
MRVC 17%
SYNC 46%

 PRSS, MRVC, DAEG, EXTR and UNTD can still be bought.

Last week we went 8 stocks up, 5 down and 1 even. Since inception we are now 66 stocks up and 19 down for a 77.6% winning percentage (80% is our target win %). Of our closed-out positions 59 have been winners and 13 have been losers for an 82% win percentage and a 34% average net gain per position.

Since our beginning, we have closed out the following positions:  Continue reading

CSI Tip: BUY DAEG

DAEG announced Q4 2014 earnings (quarter ended April 30, 2014) on June 17th. Revenues were $7.2 million down from $9.8 million last year. They actually made a profit of $.01 per share on a GAAP basis. On a Non-GAAP basis they made $.07 a share versus $.03 last year. Our valuation rose to $3.39 up from $3.25 last quarter. Gross margin inched over 70% and net debt came down to $7.2 million from $12.2 million a year ago. Looks like they may finally be turning the corner.

From their press release: “We are excited about our product offerings and opportunities and remain confident that we’ll demonstrate growth in the second half of calendar 2014.”

BUY

Cheap Stock Weekly Update June 16th 2014

We gave a bit of last week gain back-down 1.1%.. The DOW was down .9% and NASDAQ was down .3%. For the year, the DOW is up 1.2% and NASDAQ is up 3.2%

 SIGM and ARI earnings last week..

Some of our stocks are just stupid cheap—compared to their net cash on hand per share divided by their stock price.

Check this list:

UNTD 48%
CCUR 29%
SIGM 55%
MRVC 16%
SYNC 53%

PRSS, MRVC, DAEG, EXTR and UNTD can still be bought.

Last week we went 4 stocks up, 9 down and 1 even. Since inception we are now 66 stocks up and 19 down for a 77.6% winning percentage (80% is our target win %). Of our closed-out positions, 59 have been winners and 13 have been losers for an 82% win percentage and a 34% average net gain per position.

Since our beginning, we have closed out the following positions:  Continue reading

CSI Tip: HOLD ARI Networks

ARI announced Q3 2014 earnings (quarter ended April 30, 2014) on June 12th. Revenues were $8.2 million about even with last year. They actually made a profit of $.01 per share versus a $.05 loss last year.  Our valuation rose to $5.67 up from $5.57 last quarter. Recurring revenue was $7.6 million or 93% of total revenue.

It was nice to see them stop losing money, but growing revenue at their 80% margins boosts value more than earning $.01. Too bad their poor capital structure makes them have to balance the two. It will just take longer for them to grow.

From their press release:

“As we noted on our prior quarter earnings call, we expected year-over-year organic revenue growth in the back half of fiscal 2014 to be challenging, however, we anticipated significant improvement in our earnings and cash flow. The results for Q3 are in line with these expectations. The investments we are making in sales and marketing are having a positive impact on new sales and upsells. To date in fiscal 2014, we have invested 29.4% of revenue in sales and marketing versus 25.2% for the first nine months of last year. This has contributed to new dealer sales and upsell bookings, measured in annual contract value (ACV), being up 38.8% year-to-date. We believe this should translate into single-digit organic growth in Q1 FY15, growing toward low double-digit growth as we progress through fiscal 2015.”

HOLD

Sigma Designs Earnings Update 6/12/14

SIGM announced Q1 2014 earnings (quarter ended Mary 3, 2014) on June 11th. Revenues were $36.9 million down from $38.5 million last year. GAAP net loss was $.29 a share, compared to a loss of $.13 per share last year. Non-GAAP loss was $.14 per share compared to a $.01 profit last year. Our valuation fell to $8.24 down from $9.16 last quarter. Net cash per share was $2.38.

Only forecast in the press release was that this should be the lowest revenue quarter for the foreseeable future. The market seems to like the results as the stock is up about 25% over the last few days.

Cheap Stock Weekly Update June 9th 2014

After last week’s dismal performance we had our best week of the year this week-up 5.2% We are now up 7.2% for the year. The DOW was up 1.2% and NASDAQ was up 1.9%. For the year, the DOW is up 2.1% and NASDAQ is up 3.5%

No earnings last week.

Some of our stocks are just stupid cheap—compared to their net cash on hand per share divided by their stock price.

Check this list:

UNTD 47%
CCUR 28%
SIGM 77%
MRVC 16%
SYNC 53%

 PRSS, MRVC, DAEG, EXTR and UNTD can still be bought.

Last week we went 8 stocks up and 6 down. Since inception we are now 66 stocks up and 19 down for a 77.6% winning percentage (80% is our target win %). Of our closed-out positions 59 have been winners and 13 have been losers for an 82% win percentage and a 34% average net gain per position.

Since our beginning, we have closed out the following positions: Continue reading