Month: August 2023

CSI July 2023 Update

Everything was up in July. I was up 7.4% in July and am up 27.0% YTD. NASDAQ was up 5.8% in July and is up 36.8% YTD, the Russell 2000 was up 5.4% in July and is up 13.5% YTD and the NYSE was up 3.1% and is up 7.8% YTD. I didn’t add any new stocks in July and closed my position in SRGA for a 99% loss after they declared bankruptcy. Apparently, their great new product, HOLO, didn’t pan out, and I, like everyone else, assumed they would be able to raise more money. I also sold QUAD for a 64% gain.

The AI frenzy on NASDAQ continues driving prices even higher on hope and promises.

The FED raised interest rates another ¼ point. Futures traders are betting that this is the top and that five rate cuts are in the cards starting the middle of next year. But I think the 2.4% GDP growth in Q2 and the job market are saying raise them even more. In June the FED signaled two more ¼ point increases this year to about 5.6% and then slowly falling to 4.6% at the end of 2024 and to 3.6% at the end of 2025. They have all been wrong for over a year now, so it is all guesswork.

The labor market is still running hot, albeit with continuing lay-off announcements. Mortgage rates are approaching 8%. Historically this is not that high and I think more “normal”, but it is a shock to anyone under 35.  Oil is still well under $90 a barrel, and core inflation is still running high. Ukraine is still at war, the 2 and 10 year treasury rates are still inverted and on and on. We are in a bear market and in a recession. I still think the market will correct this year. Valuations are still way too high on many stocks and their growth rates are slowing or declining, their PE ratios are too high (META earnings rose 21% and has a PE of about 30—based on AI of course) or they are losing money and have huge market caps. I have not seen any sign that the market has capitulated and is ready to go up consistently. I am not expecting great things for the markets in 2023, but, so far, I have been wrong, especially regarding NASDAQ. In the middle of July the NASDAQ 100 was up 46% and the other 3,000 stocks were up 6%.

I have not changed my valuation formula as it worked before the 2008 housing bust, after it, and before the 2020 bubble and after it. When the high-flying stocks go down, everything does, whether it makes sense or not. Many times, this is the time to buy, but, not yet.

In late 2015 I started offering a paid subscription service which is similar to the Free Blog (2006 to 2015), but, I tell you exactly what stocks I bought and why—and sold every day, with a weekly summary of activity, open positions, how many shares I own and their valuations. 91.3% of my closed positions have been profitable.

The cost to subscribe is $50 a month for individuals, with a 100 subscriber limit. First-time subscribers can purchase a 3 month subscription for $100. I am not trying to get rich by having thousands of subscribers. I give away almost all of the money I get for subscriptions. I do this for self-discipline in my investing, so I am accountable to someone besides myself which helps keep me focused. I am NOT a trader. I buy my stocks thinking I will own them for 2 years. Many, I own for far less than two years, but, some I have held for five years or more. Including my current open positions, 86.2% of my stocks have been or are profitable.

Through July 2023, I have averaged a 42.5% gain on the 73 stocks I have sold (66 winners and 7 losers) in my private portfolio since January 1, 2016. Eighteen of the 73 stocks have had buy-out offers, including two in 2016, six in 2017, two in 2018, none in 2019, two in 2020, four in 2021 and one in 2022. I have one stock subject to a “take-under” offer so far in 2023.

My seven-figure total portfolio was up 42.7% in 2021, 30.6% in 2020 and 72.8% in 2019. I took most of these gains and banked them in cash. In 2022, I lost 15.3% which was less than ½ of the NASDAQ loss of 33.1%.

I stopped publishing my free weekly CSI Blog after 10 years of publishing at the end of 2015. Since inception of the Blog in 2006, I had 73 winners, 20 losers for a 78.5% win rate with an average gain of 38.9% on the free blog.

If you are interested in becoming one of my private paid subscribers, please e-mail me at daveosowski@gmail.com to get all the terms and conditions.

Here is the list of private subscription stocks I have bought and closed out my position on since December 2015.

2023 QUAD, 64% gain

2023 SRGA 99% loss (biggest loss ever)

2023 45% of another Medtech for a 10% gain

2023 16% of a Medtech for a 13% gain

2023 ANGI, 51% gain

2023 63% of a shipping company for a 33% gain

2023 ARC, 83% gain (including dividends)

2023 OPERA, 104% gain

2022 Sold 12% of Medical device company for a 251% gain

2022 Evofem, 99% loss (spin-off from PDLI)

2022 Symbolic Logic (was Evolving Systems), 3% loss

2022 Hewlett Packard Enterprise, 90% gain

2022 Xerox, 3% gain

2022 Pitney Bowes, 83% gain

2022 Universal Insurance, .02% gain

2022 Western Union, 3% gain

2022 Sonic Foundry, 1% gain

2022 BioDelivery Sciences, 54% gain-Buy-Out offer

2022 Lee Enterprises, 41% gain-Buy-Out offer (yes again)

2021 Lee Enterprises, 115% gain

2021 Leaf Group, 84% gain-Buy-Out

2021 Evolving Systems, 222% gain

2021 DHI Group, 49% gain

2021 Avid Technology, 143% gain

2021 Synacor, 10% loss-Buy-Out

2021 Extreme Networks, 52% gain

2021 Synchronoss, 77% gain

2021 Accuray, 62% gain

2021 Alphatec, 96% gain

2020 ZAGG 43% loss-Buy-Out

2020 Alaska Comm. 46% gain-Buy-Out (again)

2020 MIX Telegraphics, 27% gain

2020 QUAD Graphics, 3% gain

2020 VOXX, 1% gain

2020 Alaska Comm. 46% gain

2020 Cutera, 31% gain

2020 Aviat Networks, sold remaining 1/3 for a 7% gain (overall 15% gain)

2020 DHI .4% gain

2020 QUAD Graphics 54% gain

2020 Medical equipment company-sold 33% for a 61% gain

2019 EXFO, 1% gain

2019 PERI, 77% gain

2019 Quantum Corp, sold for 48% gain

2019 EXTR, 15% gain

2019 DHI Corp, 46% gain

2019 Medical device company, (sold 80%), 69% gain

2019 Lantronix, 41% gain

2019 PDLI, 15% gain

2018 The Rubicon Project 1% gain

2018 Otelco 116% gain.

2018 Global Ship Lease 4% gain, Buy-Out

2018 Telecom Services (57% sold) 3% gain

2018 Lantronix, 52% gain

2018 Ceragon Networks, 82% gain

2018 Aviat Newtowrks. (1/3 sold) 17% gain

2018 Pitney Bowes 31% gain

2018 Calix 1% gain

2018 Xerox 34% gain, Buy-Out

2018 RMG Networks-1% gain

2017 Telecommunications Co., 59% gain (partial sale)

2017 magicJack 17% gain, Buy-Out

2017 eGain 56% gain

2017 YUME 90% gain, Buy-Out

2017 MaxPoint Interactive 60% gain

2017 Shortel 24% gain, Buy-Out

2017 Tremor Video 25% gain

2017 MRV Communications 6% loss, Buy-Out

2017 Ceragon Networks 55% gain

2017 Angie’s List 60% gain, Buy-Out

2017 Lantronix 135% gain

2017 Syneron Medical 46% gain, Buy-Out

2017 RocketFuel 140% gain

2017 Conduent .1% gain

2017 Harmonic 74% gain

2016 Ceragon Networks 48% gain

2016 Alphatec 71% gain

2016 Universal Insurance 36% gain

2016 Mitel Networks 15% gain

2016 Avid Technology 50% gain

2016 Silicon Graphics 70% gain, Buy-Out

2016 Imatron 30% gain

2016 Harmonic 80% gain

2016 United Online 5% loss, Buy-Out

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