Finally an up week for us  +4.3 and we are now down 10.9% for the year. Meanwhile, the DOW was up .6% and the NASDAQ was up .1%. For the year the DOW is down 1.9% and NASDAQ is up 6.6%.

CTIG, PRSS, BLIN, MRVC and AVID earnings last week.

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

Check this list:

CCUR	45%
SYNC	51%
CTIG	43%
PRSS	55%

ATEC, AVID, DAEG and SYNC, can still be bought.

Last week we went 7 stocks up, 5 down and 1 even. Since inception we are now 68 stocks up and 20 down for a 77.3% winning percentage (80% is our target win %).  Of our closed-out positions 60 have been winners and 13 have been losers for an 82% win percentage and a 35% average net gain per position.

The model portfolio assumes $10,000 invested in each stock (unless we double-up–then it is $20,000), less $10 commission each way (TD Ameritrade rate).

Avid Technology, Inc. (NASDAQ-AVID)-Recommended 1/20/2015)

Buy Price $10.25 (Was $14 before 8/15 double up at $8.08)

NEW Valuation $22.24 (Was $22.59 $23.86, $28.10)

Closed down $2.29 at $9.15

AVID announced Q2 2015 earnings (quarter ended June 30, 2015) on 8/10/2015.

http://finance.yahoo.com/news/avid-announces-financial-results-second-203852725.html

Revenues were $110 million down from $125 million last year. They made a Non-GAAP profit of $.05 per share versus a $.15 profit last year.  Our valuation moved down a bit to $22.24  from $22.59 last quarter. They upped  their 2015 guidance to $74-$80 million of adjusted EBITDA from $72-$78 million. Also, while the debt for the acquisition of Orad was on the balance sheet at June 30, the revenues and profits were not. You would think that AVID lost money and lowered their guidance by 50% with the way the market reacted.

Down 11% BUY

Alphatec Holdings, Inc. (NASDAQ-ATEC)-Recommended 9/2/2014)

Buy Price $.93 ($1.56 before doubling up on 8/10/2015 at $.66)

Valuation $2.54 (Was $2.61, $3.11, $2.95, $3.00)

Closed up $.03 at $.69

ATEC announced Q2 2015 (June 30, 2015) earnings on August 4, 2015.

http://finance.yahoo.com/news/alphatec-holdings-announces-second-quarter-200500460.html

No one liked them as the stock plummeted more than 50%. Revenues were $46.6 million ($50.2 million in constant currency) compared to $53.2 million last year. EBITDA was down 50% from $7.7 to $3.8 million. Our valuation came in at $2.54 compared to the previous $2.61. We are cutting ATEC to a HOLD until they can reverse the negative trends in revenue, gross margin and EBITDA.

After the reaction to the earnings we bought more and suggest doubling up here as the selling seems over done. This will bring our average Buy price down to $.93.

Down 26% BUY

CafePress, Inc.  Inc. (NASDAQ-PRSS)-Recommended 5/19/2014)

Buy Price $4.01 (Was $5.40 before adding $10,000 at $3.19 on 3/2/2015)

Valuation $9.09 (Was $12.50, $11.17, $12.51, $11.27)

Closed up $.54 at $4.80

PRSS announced Q2 2015 (6/30/2015) earnings on 8/14/2015.

http://finance.yahoo.com/news/cafepress-reports-results-second-quarter-201500378.html

Not bad. They continue to slim down the business to its core. They are divesting their EZ print business now also. Revenues fell to $21.8 million from $29.1 million last year, but their loss from operations declined to $1.8 million from $4.4 million last year. Adjusted EBITDA was positive $.7 million versus negative $1.8 million last year. Cash fell to $46 million ($2.64 a share from $56 million due to working capital changes and the repurchase of $2.3 million worth of stock. Our valuation was $8.95 down a tad from $9.09 last quarter.

UP 20% HOLD

Extreme Networks, Inc.  Inc. (NASDAQ-UNTD)-Recommended 3/12/2014)

Buy Price $3.43 (was $3.95 before we added another $10,000)

Valuation $9.47, (Was $6.99, $9.34, $8.24, $9.68, $8.52)

Closed up $.11 at $2.93

Extreme announced Q4 2015 (June 30, 2015) on August 6, 2015.

http://finance.yahoo.com/news/extreme-networks-reports-fourth-quarter-110000404.html

Revenues came in at $149.9 compared to $155.3 and they made $.10 a share versus $.09 a share on a Non-GAAP basis. Our valuation came in at $9.47 a share versus $9.68 last year. Based on their guidance for next quarter we estimate our valuation at $7.45 compared to $8.24 for Q3 2014. Not heading in the right direction. This is a HOLD, hovering on a Sell. They need to cut expenses and/or sell the company.

Down 15%, HOLD

Synacor Inc. (NASDAQ-SYNC)-Recommended 12/17/2013)

Buy Price $2.56

Valuation $5.71 (Was $6.61, $5.58, $5.21, $5.44, $6.67, $6.39)’

Closed down $.05 at $1.65

SYNC announced Q2 2015 (June 30, 2015) earnings on 8/4/2015.

http://finance.yahoo.com/news/synacor-gains-ebitda-momentum-revenue-200100723.html

Revenues were $24.7 million up slightly from $24.2 million the prior year.  They had a Non-GAAP loss of about $.3 million compared to a loss of $1 million last year. SYNC’s valuation fell from last quarter to $5.29, but was a tad higher than last years $5.21. SYNC is trading at 30% of our valuation.

Down 36%. BUY

Dex Media Inc. (NASDAQ-DXM)-Recommended 5/10/2013)

Buy Price 6.46 ( Was $15.14 before adding $10,000 on 3/30/2015)

Valuation $21.00 (Was $31.00, $31.00, $34.00, $37.98, $34.36, $31.50, $24.25)

Closed up $.05 at $.31

Q2, 2015 earnings were announced August 6, 2015.

http://finance.yahoo.com/news/dex-media-announces-second-quarter-110000263.html

Revenues were $387 million, down  from $474 million last year and down from $406 million last quarter and adjusted EBITDA was $159 million up from $143 million last quarter and down from $176 million last year. Overall not a great quarter. For the year they are guiding to revenue of about $1.5 billion and $525 million of EBITDA. In their original projection for 2015 they were looking at revenue of $2.077 billion and EBITDA of $782 million. Clearly they are not making their projections. Net debt was $2.144 (their original projection was to end 2015 with $2.004 billion of debt—a goal they will likely make. Based on this performance we have lowered our valuation to $4.71 a share. DEXM is a HOLD

DEX announced a major restructuring on December 11, 2014. They expect to incur

$70-$100 million of expenses to achieve $150 million of ongoing expense savings with $110 million of that coming in 2015. They expect to begin deleveraging their balance sheet (meaning Net Debt to adjusted EBITDA ratio) in 2016. No question that’s what they need to do.

Down 95% HOLD

Daegis Inc. (NASDAQ-DAEG)-Recommended 11/30/2012)

Buy Price $1.09 (Was $1.20 before we doubled up)

Valuation $2.20 (Was $1.83, $2.83, $2.85, $3.39, $3.25, $3.42, $4.64, $4.86, $4.00)

Closed down $.19 at $.36

No reason we see for the big drop last week. Other than the nervous market. We are adding more personally at this price.

DAEG announced Q4 2015 earnings (quarter ended April 30, 2015) on 7/28/2015. Revenues were $6.1 million down from $7.4 million last year but up from $5.7 million last quarter. They lost $.03 per share on a GAAP basis compared to income of $.01 last year.  On a Non-GAAP basis they lost $65,000 versus a profit of $1,087,000 last year. Our valuation rose to $2.20 up from $1.83 last quarter on lower net debt ($6.4 million), higher sales and lower losses.

With the discontinuance of their eDiscovery business, Daegis is now a pure play enterprise software company and is trading at only 30% of our valuation. We are changing to a cautious.

.Down 67%, BUY

Bridgeline Digital Inc. (NASDAQ-BLIN)-Recommended 8/24/2012)

Buy Price $3.95 ($ 5.85, $6.20 before 12/15/2014 and 2/14/2014 $10,000 adders)

NEW Valuation $6.20 (Was $6.10, $5.85, $5.98 $7.55, $8.75, $8.80, $1.83, $9.15, $10.95, $11.75, $12.80, $11.20)

Closed up $.04 at $1.38

BLIN announced Q3 2015 earnings (quarter ended June 30, 2015) on 8/14/2015. Revenues were $4.9 million down from $6.2 million last year but up from $4.8 million last quarter. They lost $.20 per share on a Non-GAAP basis compared to $.24 last year. Our valuation rose to $6.20 up from $6.10 last quarter on better margins. Overall, while margins and EBITDA (adjusted) improved it was pretty much a nothing quarter. Have to wait longer here as they eke out an existence and hopefully get this little boat moving in the right direction. HOLD

http://finance.yahoo.com/news/bridgeline-digital-announces-financial-results-120000429.html

Down 65%, HOLD

Telecommunications Systems Inc. (NASDAQ-TSYS)-Recommended 6/14/2012)

Buy Price- $1.37

Valuation $5.78 (Was $5.43, $6.55, $6.88, $6.12, $5.99, $5.32, $6.81, $6.28, $4.89, $6.02, $6.72, $5.49)

Closed down $.06 at $3.43

TSYS announced Q2 2015 (March 31, 2015) earnings on 7/30/2015.

http://finance.yahoo.com/news/telecommunication-systems-reports-second-quarter-200500282.html

Revenues were $87.9 million, up from $81.9 million last year and adjusted EPS was $.05 compared to $.04 last year. Overall an OK quarter-again. Our valuation was $5.78 down from $6.12 last year and up from $5.43 last quarter. TSYS is trading at 64% of our valuation.

We are now waiting on the outcome of their “strategic alternatives” investigation with Lazard. Shares closed at $3.70 on 7/30/2015. This is still a HOLD. We are up 170% on TSYS

UP 150%, HOLD

MRV Communications (Pink Sheets-MRVC.pk)-Recommended 10//10/2011

NEW Valuation $26.52 (Was $23.19, $24.44, $25.52, $24.58, $23.19, $25.50, $28.98, $24.01 $23.06, $27.15, $31.80, $34.60, $28.60, $41.20, $43.20 (after $9.50, $6.00 and $1.40 special dividends), $52.40, $55.80)

Buy Price October 7, 2011- $8.50 ($25.40 before special dividends)

Closed at $16.82 up $5.00

Q2 2015 earnings were announced on, August 10, 2015 and the sale of their low margin network equipment business for approximately $21.4 million or $3 per share.

http://finance.yahoo.com/news/mrv-reports-second-quarter-2015-200800453.html

Revenues were $42 7 million down from $43.1 last year. Network equipment revenues were $24.5 million up 12.4% from $21.8 million last year. GAAP net loss was $.3 million compared to a loss of $2.3 million last year. Non-GAAP income was $.2 million versus a loss of $1.6 million last year. Our valuation based on the reported results jumped to $26.52. A rough pro-forma valuation for the company post sale of network integration came in at  $25.20

Up 96%  HOLD

Concurrent Computer (NASDAQ-CCUR)-Recommended 2/4/2011)

Buy Price-$4.58 (Was $5.08 before $.50 special dividend)

Valuation $16.38 (was $13.07, $14.80, $17.72, $15.01, $15.10,  $14.55, $14.77, $16.26, $16.20, $15.37, $13.53, $15.85, $14.13, $11.38, $14.04, $18.54, $15.99)

Closed down $.17 at $6.42 (including $1.20 of dividends)

Pays $.48 annual dividend

CCUR announced Q3 2015 (December 31, 2014) earnings on April 28,2015. Revenues were $17.1 million, down 7% from $18.3 million last year but up from $16 million last quarter. They made $.780,000 profit versus a loss of $.6 million last quarter and a $1.1 million profit last year. Gross margin held steady at 59%. Our valuation jumped back up to $16.38 from $13.07 last quarter. Cash per share rose  to $2.93 or 49% of the market cap. We will keep a HOLD on CCUR until we see what the new CEO can do and they get revenue growth back. We continue to collect the 7% dividend.

UP 40%, HOLD

ARI Networks (ARIS.ob-Recommended 8/19/2006)

Buy price $1.61 (Was $1.78 before another $10,000 added, was $2.06 before double up),

Valuation $6.66 (was $6.47,  $5.96, $6.02, $5.67, $5.57, $5.70, $6.71, $6.41, $6.14, $5.97, $6.21, $6.13, $5.82, $5.81, $5.72, $5.65, $5.39, $4.86, $5.60, $5.73, $5.54, $5.74, $5.96, $4.72, $5.19, $5.66, $5.63, $5.61, $5.71, $5.49, $5.34, $5.03, $5.28, $5.28, $5.21)

Closed at $3.32 up $.14.

Wynnefield continued their selling outing a cap on ARI’s stock price. They now own 693,000 shares down from 992,000. They are now at 4.1%.

Q3 2015 were announced on June 11, 2015. Pretty good. Revenues were $10.3 million, up 26% from last year and they made $.02 a share compared to $.01 last year. Our valuation rose to $6.66 a share.

http://finance.yahoo.com/news/ari-network-services-inc-announces-200100623.html

In addition to the 1.5 million share offering Wynnefield Capital has been selling shares-about 250,000 from 3/31/2015 to 5/12/2015 at prices from $3.20 to $3.38. They still have 992,000 shares or 6.9% of ARI. Assuming they are getting out, this will keep pressure on the price for a while.

ARI announced on May 7, 2015 that they had priced a 1.53 million share offering for expected net proceeds of about $4.7 million which they will use to pay off the $1.75 of debt they incurred on their recent acquisition of TASCO and for future acquisitions.

They are doing a good job positioning the company to be acquired. Hopefully this will soon happen with a $5+ price like we got for XRS in September 2014.

UP 106%, HOLD, Still a large valuation gap here and the Company is executing well.

CTI Holdings (CTIG.ob-Recommended 2/25/2006)

Buy price $.27 ask,

NEW Valuation $1.12 (Was $1.21, $1.39, $1.34, $1.22, $.99, $1.02, $1.05,  $1.07, $1.14, $1.17, $1.34, $1.34, $1.37, $1.36, $1.23,  $.91, $1.21, $.71, $.83, $.88 $.96, $.93, $.75, $.85, $1.57, $1.40, $1.29, $1.38, $1.31, $1.38, $1.29, $1.42, $1.28 $1.13, $1.05, $.82)

Ask price $.34 closed at $.31

CTIG announced Q2 2015 (June 30, 2015) earnings on 8/14/2015.

http://finance.yahoo.com/news/cti-group-reports-2015-second-212621737.html

Revenues came in at $3.7 million versus $4.1 million last year. They lost $323,000 compared to a loss of $296,000 last year.

Our valuation fell a bit to $1.12 a share, down from $1.21 last quarter and $1.22 last year. We will continue to HOLD CTIG.

Commenting on the results, Fred Hanuschek, CTI Group’s CEO and President, stated, “Although our first half results were not as strong as we had hoped, we are encouraged by the number of opportunities that we are actively pursuing and believe these opportunities should lead to better second half results

Still way undervalued, but no light as to when or how this will ever be properly valued.

John Birbeck announced his departure in October 2014. He was one of the group trying to take CTIG private for $.40 a share. Birbeck will remain a Director of the company. He owns about 7% of CTIG (about 2.3 million shares).

They need to get an investment banker and sell the company. Probably get at least $.75 a share for it from someone.

UP 26%. HOLD