CSI Update-November 2017 Free Blog

Of our closed out positions on the Blog, since inception, we have had 71 winners, 17 losers for an 80.7% win-rate with an average gain of 38.4%.

Since we now have only 5 stocks in our “portfolio” we will be discontinuing the portfolio performance metrics in 2017. We will continue to update on the remaining stock positions individually in 2017.

In November:

PRSS. Lloyd Miller who owns 20% of PRSS has had enough. He filed a Form 13D/A in November pushing for a sale of the company. About time. I doubt we will get out with a profit, but it is possible.

AVID announced Q3 earnings. Not bad, not great but the market seemed to like them. Revenue was $105.3 million compared to $119 million last year which included $12 million of the SEC mandated accounting BS. GAAP net income was $72,000 compared to $9.1 million (including the $12 million noted above. Adjusted EBITDA was $11.4 million compared to $5.5 million last year. Q4 guidance is revenues between $103 million and $113 million and adjusted EBITDA of $14 million to $20 million. My valuation crept up to $16.95 from $16.50. Still a Buy here. https://finance.yahoo.com/news/avid-technology-announces-q3-2017-210500993.html

SYNC reported Q3 2017 earnings. They were good in my opinion, but they released into a bad market day and no one seems to care. Revenues were up 14% to $36.3 million from $31.7 million last year and $31.2 million last quarter. On a Non-GAAP basis they lost about $500,000 even though they reported a profit which included a gain on the sale of an investment of $1.9 million. Net cash fell about $1.5 million to $16.5 million. My valuation rose to $5.81 from $5.32. The best part was that their Q4 guidance is revenue of $46 to $51 million and adjusted EBITDA of $2 to $4 million ($1.8 million this quarter). If they hit the low end of the guidance my valuation will jump to over $7.50 a share. I guess nobody believes it because the stock did nothing. Still a BUY around $2.50. https://finance.yahoo.com/news/synacor-delivers-14-percent-revenue-210500361.html

ATEC announced final Q3 earnings. About as pre-announced. Revenues were $23.1 million compared to $26.7 last year and they lost $3.1 million compared to $13.7 million last year. Adjusted EBITDA was $1.1 million compared to $.7 million last year. Cash was down to $15.4 million down from $19.1 million at June 30th. They received $1.7 million after the quarter from warrant exercises and expect $3.5 to $4 million before 1/1/2018 from the Nuvasive guys. My valuation came in at $5.93 down from the previous $7.42. They did not give guidance other than to say next quarters sales should be higher.  I think my valuation for ATEC is very conservative, but it needs to start rising over the next couple of quarters or I may have to sell it. HOLD. https://finance.yahoo.com/news/alphatec-holdings-inc-host-earnings-173000250.html

.November 2017 Legacy Positions:


                  Share      Current      Lifetime      Current      Price to     Prior

 Stock         Cost          Price          Gain            Value         Value       Value

BLIN           $19.76       $2.59            (87%)             $7.01         37%         $7.20

SYNC           $2.56         $2.45            (4%)               $5.81         42%         $5.32

PRSS           $4.01          $1.81           (55%)              $5.37         34%       $6.49

ATEC          $7.06          $2.62           (63%)               $5.93         44%       $7.42

AVID           $8.35         $6.73           (19%)            $16.95        40%       $16.50




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