Quick update:

Miva valuation fell to $7.37 from $7.52 (2%). More cost cuts promised in 2007, so maybe this one will turn around over the next quarter or two. Stock has fallen this week, but so has the market. HOLD.

QADI valuation jumped from $13.69 to $15.92–16%, on a very nice quarter. Hopefully the stock will reflect this tomorrow. We like it. BUY.

SPNC–very good news on their CELLO trials. FDA agreed to cut the enrollment group to get the data submitted for approval. Think this will get appoved!! This is very big. Stock rose to $10.56 from $9.88. Should have gone higher in our opinion, but the shorts are STILL playing around. Maybe we will see something from Citibank on an increase in their target price too in ths next couple of days, after their presentation yesterday. BUY.

Last week we went 5 up and 9 down and 2 even. LINN.ob holds first place on our “biggest dog” list followed by INFT, PARL, SPNC, DWCH, SPNC, PDLI and BDR . For the week, 2007 year-to-date, and since we started this Blog in January 2006, our model portfolio is +.4%,+4.7% and +20.8% respectively. Since inception we are 13 stocks up and 7 down (4 of which are down less than 10%).

We are still up 4.7% so far in 2007, while the DOW is down 1.5%, NASDAQ is down 1.1% and the S+P 500 is down 1.1%. Really no significant news about any of our stocks last week other than PDLI. RITT continued to barrel along and is now up 68%.

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

Spectranetics (SPNC-Recommended 9/2/2006)
Buy price $10.65, Valuation $18-$20
Down $.34 to $9.71 last week. Shorts won the battle again last week. This is a great company with great prospects that is executing well–but the stock continues to lag.
Now down 9% so far. BUY.

QAD Inc. (QADI-Recommended 6/14/2006)
Buy price $6.93, Valuation $13.69 (was $13.73 and $11.86)
Closed at $8.46, up $.39. Trading at 62% of valuation. Earnings due March 15th. No news, although there is some speculation about a LBO on the message boards. Has $1.07 in cash also.
Up 22% so far. HOLD.

PDL BioPharma Inc. (PDLI-Recommended 5/21/2006)
Buy price $19.31, Valuation > $30
Closed at $18.70, up $.44. On March 5th, activist investment firm Third Point LLC wrote a letter to PDLI management, pushing them to get their act together as far as the business and share price. They also disclosed that they owned 8 million shares or 7.5% of the company. A catalyst! We love it. Maybe this will get PDLI to start focusing on the share price and why it is so low. PDLI will present at a Cowen conference on 3/15. We think that PDLI is a bargain at this price. This however, remains a very volatile stock.
Now down 3%. BUY.

MIVA Inc. (MIVA-Recommended 3/18/2006)
Buy price $3.80, Valuation $7.52 (was $7.38 and $9.10)
Earning due out March 14th, after the close.
MIVA closed at $3.99, down $.01. Now up 5%. 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 $2.99, down $.04 for the week. No news.
Now down 9%. BUY.

Inforte Corp. (INFT-Bought January 13, 2006)
Buy price $4.11, Valuation $6.13 (was $6.95, $6.86)
Down $.04 to $3.52 last week. Has $2.64 per share in cash. Price objective $5.50.
Now down 14%. No news. HOLD.

Mobius Management Systems (MOBI-Recommended 11/12/2006)
Buy price $6.68 (averaged down from $7.08), Valuation $12.82, was $12.69
Up $.06 to $7.21 last week. No news.
Up 8%. HOLD.

RiT Technologies (RITT-Recommended 11/12/2006)
Buy price $1.00, Valuation $3.36 (Was $2.69)
No news. Closed up $.12 at $1.68 last week.
Looks like this one still wants to go higher.
Up 68%. HOLD.

Parlux Fragrances (PARL-Recommended 11/30/2006)
Buy price $6.65, Valuation $13.77)
PARL closed at $5.79, down $.09 last week.
We think the stock price will continue to vacillate for a while until we get some positive news. Even a 10Q filing might cause this one to spike up.
Down 13%. BUY.

Blonder Tongue Laboratories (BDR-Recommended 3/4/2007)
Buy price $1.83, Valuation $5.88.
Closed at $1.81 down $.02 for the week. No news, not much volume.
Down 1%. BUY

OB-abies (Bulletin Board Listed Stocks)

ARI Networks (ARIS.ob-Recommended 8/19/2006)
Buy price $2.06, NEW Valuation $5.03 (was $5.28, $5.28, $5.21)
Closed at $2.10, unchanged last week. This stock is still illiquid, so price moves are fairly meaningless at this point. Earnings last week. Sales up 5% and they made money–although less than last year as they continue to invest in sales and marketing. Valuation dropped to $5.03, but this is due to no sales contribution of their acquisition of OC-Net yet, while the balance sheet impact did impact the quarter.
Now up 2% so far. 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 $.27, unchanged last week. Still trading at only 48% of our current valuation. Earnings last week. Sales down 11% from the prior year and 1% from the prior quarter. They had a loss of $384,00 for the quarter. We were not expecting great things and we were right. We will give LION another quarter ot two to see if they can turn things around. They are still “cheap” compared to our valuation.
Down 25%. 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 $1.55, down $.05 last week. No news and volume dried up. We think this is just due to investors focusing on some of the more battered investments opportunites created by the prior weeks market fall. Has $.44 in cash per share also. We have now dropped out of the $1.60-$1.70 range. Still hoping we will see north of $2.00 this year.
24% gain so far. HOLD.

Avatech Solutions Inc. (AVSO.ob-Bought November 28, 2005)
Buy price $1.19, NEW Valuation $3.29 (was $2.69, $3.36, $3.81)
Stock closed at $1.63, down $.12. Someone is tryng to unload about 34,000 shares and only managed to sell about 14,000 last week. So until the overhang of about 19,000 shares is cleared away, we appear to be stuck around the $1.65 range. If they would just meter this sell order out a bit, we think they could get a better price, but maybe they are dealing with a margin call and need to sell now.
Now up 37%. HOLD.

CTI Holdings (CTIG.ob-Recommended 2/25/2006)
Buy price $.27 ask, NEW Valuation $1.28 (Was $1.13, $1.05, $.82)
Ask price jumped $.05 to $.35. Closed at $.31. Finally we got some numbers about their Ryder purchase. Not bad at all. Our new valuation based on the “pro-forma” numbers in their SEC filing came in at $1.28 per share.
Up 30% based on the ASK price. BUY

INYX Inc. (IYXI.ob-Bought January 3, 2006)
Buy price $1.91, Valuation–over $3.00)
Closed at $2.19, down $.21 last week. Still waiting on the “attractive cash offer” that was promised by the end of February. Looks like people are getting worried that nothing will happen after some enthusiasm last week. Our guess is that with no update from management on this offer, is that they are “knee-deep” in putting the deal together and there is nothing to report–other than the offer is delayed. Hopefully the offer will come, and it will be attractive by our standards and be at least $3 per share–so we can book a a 50% gain on this one. Bank debt is now scheduled for repayment by March 31, 2007 and they have arranged financing for their latest acquisition.
Up 15% HOLD.

ARI released Q2 earnings this morning. Not bad. Sales were up 5% to $3.69 million, but earnings were down to $.248 million from $.524 million as they continue to invest in additional sales and marketing resourses. Our valuation fell a bit to $5.03 per share from $5.28, mostly because they bought OC-Net in Q2, which was reflected in their balance sheet, but not their P+L in Q2. They are forecasting increasing sales gains in the second half of the year, without the impact from OC-Net. OC-Net will get them some “bulk” and maybe help get them on some radar screens–and hopefully increase their earnings. For the six months of FY2007 ARI had net income of $.07 per share, untaxed. So if they can even repeat this in the second half they are at $.14 untaxed and around $.09 fully taxed. We rate this a BUY.

Blonder Tongue Laboratories (AMEX–BDR)
Valuation-$5.88
Closing price March 2, 2007-$1.83

We had looked at BDR back in January and early February and tried to buy some back then. But then the stock took off and went as high as $2.60 before we could get any. With the market swoon, it has retraced all the way back to where it was. We have been buying last week at $1.90-$1.95, so the price now is even better! We recommend buying BDR now up to the $1.95 level, if necessary.

BDR is more a hardware company than the software companies we normally look at, but it has a number of things going on that caught our eye:

1) Announced a 100,000 share buy-back in early February.
2) Sold its cable TV subsidiary in December for $3.1 million, which will also save the company $525,000 a year on their P+L going forward.
3) Will have an $875,000 gain from the cable sale
4) Sold some patents in December for $2 million
5) In November 2006, they took advantage of a former Directors bad fortune and bought back 1.3 million shares at $.75 per share, when the Director could not meet his margin call.

These asset sales ought to allow them to pay off most of their debt (about $6 million at 9/30/2006).

In the September 30, 2006 quarter BDR did a bit under $10 million in sales and made $.02 per share (untaxed). So it appears they have turned the corner of profitability, have shorn up their balance sheet, reduced their shares outstanding and we have a potential double here over the next year.

BDR’s products address a growing market segment:

The Company designs, manufactures, and supplies a comprehensive line of equipment to deliver video (analog & digital), high speed data and voice services over integrated coaxial and fiber optic broadband networks today and over packet based, Internet protocol networks of the future.

Last week we went 5 up and 8 down and 2 even. LINN.ob holds first place on our “biggest dog” list followed by INFT, PARL, DWCH, SPNC and PDLI. For the week, 2007 year-to-date, and since we started this Blog in January 2006, our model portfolio is -2.3%,+4.3% and +20.4% respectively. Since inception we are 13 stocks up and 6 down (3 of which are down less than 10%).

What a nasty week last week. While we got hit some, we are still up 4.3% so far in 2007, while the DOW is down 2.8%, NASDAQ is down 2% and the S+P 500 is down 2.2%. Really no significant news about any of our stocks last week. RITT and AVSO.ob continued to barrel along and are now up 56% and 47% respectively.

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

Spectranetics (SPNC-Recommended 9/2/2006)
Buy price $10.65, Valuation $18-$20
Down $.57 to $10.05 last week. Shorts won the battle last week as the markets obviously didn’t help. This is a great company with great prospects that is executing well–but the stock continues to lag.
Now down 6% so far. BUY.

QAD Inc. (QADI-Recommended 6/14/2006)
Buy price $6.93, Valuation $13.69 (was $13.73 and $11.86)
Closed at $8.07, down $.46. QAD lost all the gain from the previous week when it jumped due to the Robinson Humphrey upgrade. Trading at 59% of valuation. Earnings due March 15th. No news. Has $1.07 in cash also.
Up 17% so far. HOLD.

PDL BioPharma Inc. (PDLI-Recommended 5/21/2006)
Buy price $19.31, Valuation > $30
Closed at $18.26, down $1.23. We still think that PDLI is a bargain at this price. This however, remains a very volatile stock.
Now down 5%. BUY.

MIVA Inc. (MIVA-Recommended 3/18/2006)
Buy price $3.80, Valuation $7.52 (was $7.38 and $9.10)
MIVA closed at $4.00, down $.35. Now up 5%. 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 $3.03, up $.02 for the week.
Now down 6%. BUY.

Inforte Corp. (INFT-Bought January 13, 2006)
Buy price $4.11, Valuation $6.13 (was $6.95, $6.86)
Down $.01 to $3.56 last week. Has $2.64 per share in cash. Price objective $5.50.
Now down 13%. Like watching “moss grow”. HOLD.

Mobius Management Systems (MOBI-Recommended 11/12/2006)
Buy price $6.68 (averaged down from $7.08), Valuation $12.82, was $12.69
Up $.03 to $7.15 last week. Holding up well.
Up 7%. HOLD.

RiT Technologies (RITT-Recommended 11/12/2006)
Buy price $1.00, Valuation $3.36 (Was $2.69)
No news. Closed up $.08 at $1.56 last week.
Looks like this one wants to go higher.
Up 56%. HOLD.

Parlux Fragrances (PARL-Recommended 11/30/2006)
Buy price $6.65, Valuation $13.77)
PARL closed at $5.88, down $.65 last week.
We think the stock price will continue to vacillate for a while until we get some positive news. Even a 10Q filing might cause this one to spike up.
Down 12%. BUY.

OB-abies (Bulletin Board Listed Stocks)

ARI Networks (ARIS.ob-Recommended 8/19/2006)
Buy price $2.06, Valuation $5.28 (was $5.28, $5.21)
Closed at $2.10, unchanged last week. This stock is still illiquid, so price moves are fairly meaningless at this point. Thankfully, ARI went back to sleep as far as trading volume goes last week–less than 20,000 shares traded all week. Not a bad week to “sit-out”. Earnings due March 8th after the market close. Hoping for some revenue growth here. No very concerned with the bottom line as long as any loss is not BIG.
Now up 2% so far. HOLD. Still a Huge valuation gap here.

Lion Inc. (LINN.ob-Recommended 4/15/2006)
Buy price $.36, Valuation $.62 (was $.66 and before that-$.79)
Closed at $.27, down $.01 last week. Still trading at only 44% of our current valuation. Earnings due March 8th, after the close. Unfortunately we are not expecting great things here.
Down 25%. 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 $1.60, unchanged last week. There was a 30,000 share bid sitting there on Friday at $1.58, but after trading about 5,000 shares the bid “went away”. But it shows there is decent buying interest out there. We managed to snag a few shares at $1.51 on Wednesday. Has $.44 in cash per share also. We are now stuck in the $1.60-$1.70 range. Maybe we will see north of $2.00 this year.
28% gain so far. HOLD.

Avatech Solutions Inc. (AVSO.ob-Bought November 28, 2005)
Buy price $1.19, NEW Valuation $3.29 (was $2.69, $3.36, $3.81)
Stock closed at $1.75, up $.05. Price keeps creeping up, even in a crummy market like last week.
Now up 47%. HOLD.

CTI Holdings (CTIG.ob-Recommended 2/25/2006)
Buy price $.27 ask, Valuation $1.13 (Was $1.05, $.82)
Ask price fell $.03 to $.30. Closed at $.30. Cash is (was) $.24 per share. Ten weeks ago CTI announced the purchase of Ryder Systems LTD. an international provider of electronic and on-line billing solutions and developer of VoIP business applications. Nine weeks ago they filed an 8-K, with details of the financing they got to fund the $11 million purchase–but still no details of what they bought.
Now up 11% so far (based on ask price). HOLD until we see what we just bought.

INYX Inc. (IYXI.ob-Bought January 3, 2006)
Buy price $1.91, Valuation–over $3.00)
Closed at $2.40, up $.10 last week. Well no announcemnt on the “attractive cash offer” by the end of February as promised. There seemed to be some anticipation of it last week as the price rose as high as $2.55, but nothing happened and then the market crashed. Hopefully the offer will come, and it will be attractive by our standards and be at least $3 per share–so we can book at least a 50% gain on this one. Bank debt is now scheduled for repayment by March 31, 2007 and they have arranged financing for their latest acquisition.
Up 26% HOLD.

Last week we went 8 up and 6 down and 1 even. LINN.ob holds first place on our “biggest dog” list followed by INFT, DWCH, PARL and SPNC. For the week, 2007 year-to-date, and since we started this Blog in January 2006, our model portfolio is +.8%,+6.6% and +23.0% respectively. Since inception we are 14 stocks up and 5 down (2 of which are down less than 5%).

Spectranetics and PDL BioPharma released earnings last week.

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

Spectranetics (SPNC-Recommended 9/2/2006)
Buy price $10.65, Valuation $18-$20
Down $.39 to $10.62 last week. Shorts won the battle last week, despite a very good earnings report. We got the revenue “pop” we were hoping for –+44% over last year, but after an early spike up to $11.80, down we went. Things seem to be going great at the company, laser placements are up, disposable sales are up. They lost a bit of money, due the a litigation expense, but only a small amount. Guidance for next year was decent ($79-$83 million in revenue and about break-even on the bottom line–they are always conservative to a flaw) and did not include any revenue for the TurboBooster.
Now down a tiny .3% so far. BUY.

QAD Inc. (QADI-Recommended 6/14/2006)
Buy price $6.93, Valuation $13.69 (was $13.73 and $11.86)
Closed at $8.53, up $.46. Robinson Humphrey gave QAD an upgrade last week. So this one is starting to get noticed. Trading at 62% of valuation. Earnings due March 15th. No news. Has $1.07 in cash also.
Up 23% so far. HOLD.

PDL BioPharma Inc. (PDLI-Recommended 5/21/2006)
Buy price $19.31, Valuation > $30
Closed at $19.49, up $.33. Earnings last week. Q4 revenues were up 29% to $108 million, GAAP loss was huge due to a write-down ($.78 per share) but Non-GAAP income was $.05 per share. PDLI was cash flow positive for the year and had over $400 million of cash at the end of 2006. Guidance for 2007 was $450-$500 million in revenues and a Non-GAAP profit of $.38-$.54 per share. Their drug pipeline continues to expand and we still think that PDLI is a bargain at this price. This however, remains a very volatile stock.
Now up 1%. BUY.

MIVA Inc. (MIVA-Recommended 3/18/2006)
Buy price $3.80, Valuation $7.52 (was $7.38 and $9.10)
MIVA closed at $4.35, up $.01. 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 $3.01, up $.11 for the week. Seeing more volume on this one too.
Now down only 6%. BUY.

Inforte Corp. (INFT-Bought January 13, 2006)
Buy price $4.11, Valuation $6.13 (was $6.95, $6.86)
Down $.03 to $3.57 last week. Has $2.64 per share in cash. Price objective $5.50.
Now down 13%. Like watching “moss grow”. HOLD.

Mobius Management Systems (MOBI-Recommended 11/12/2006)
Buy price $6.68 (averaged down from $7.08), Valuation $12.82, was $12.69
Up $.07 to $7.12 last week. Volume (and price) seems to be picking up a bit for MOBI. Maybe we will see a good price move soon.
Up 7%. HOLD.

RiT Technologies (RITT-Recommended 11/12/2006)
Buy price $1.00, Valuation $3.36 (Was $2.69)
No news. Closed up $.08 at $1.48 last week.
Up 48%. HOLD.

Parlux Fragrances (PARL-Recommended 11/30/2006)
Buy price $6.65, Valuation $13.77)
PARL closed at $6.53, down $.26 last week. They received another delisting notice from the SEC due to their failure to file their September 2006 Form 10Q. We think the stock price will continue to vacilate for a while until we get some positive news.
Down 2%. HOLD.

OB-abies (Bulletin Board Listed Stocks)

ARI Networks (ARIS.ob-Recommended 8/19/2006)
Buy price $2.06, Valuation $5.28 (was $5.28, $5.21)
Closed at $2.10, up $.15 last week. This stock is still illiquid, so price moves are fairly meaningless at this point. However, ARI traded every day last week and actually did 68,000 shares on Thursday and got up to $2.28 (normal daily volume is 5,000). Earnings due March 8th after the market close. Hoping for some revenue growth here. No very concerned with the bottom line as long as any loss is not BIG.
Now up 2% so far. HOLD. Still a Huge valuation gap here.

Lion Inc. (LINN.ob-Recommended 4/15/2006)
Buy price $.36, Valuation $.62 (was $.66 and before that-$.79)
Closed at $.28, down $.02 last week. Still trading at only 45% of our current valuation. Earnings due March 8th, after the close. Unfortunately we are not expecting great things here.
Down 22%. 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 $1.60, down $.10. Has $.44 in cash per share also. We are now stuck in the $1.60-$1.70 range. Maybe we will see north of $2.00 this year.
28% gain so far. HOLD.

Avatech Solutions Inc. (AVSO.ob-Bought November 28, 2005)
Buy price $1.19, NEW Valuation $3.29 (was $2.69, $3.36, $3.81)
Stock closed at $1.70, up $.04. No news, but the price keeps creeping up, even in a crummy market like last week.
Now up 43%. HOLD.

CTI Holdings (CTIG.ob-Recommended 2/25/2006)
Buy price $.27 ask, Valuation $1.13 (Was $1.05, $.82)
Ask price fell $.01 to $.33. Closed at $.34. Cash is (was) $.24 per share. Nine weeks ago CTI announced the purchase of Ryder Systems LTD. an international provider of electronic and on-line billing solutions and developer of VoIP business applications. Eight weeks ago they filed an 8-K, with details of the financing they got to fund the $11 million purchase–but still no details of what they bought.
Now up 22% so far (based on ask price). HOLD until we see what we just bought.

INYX Inc. (IYXI.ob-Bought January 3, 2006)
Buy price $1.91, Valuation–over $3.00)
Closed unchanged at $2.30. Still waiting for the “attractive cash offer” that management says is coming in February–only 3 trading days left, although another delay would not surprize us. Hopefully it will be attractive by our standards and be at least $3 per share–so we can book at least a 50% gain on this one. Bank debt is now scheduled for repayment by March 31, 2007 and they have arranged financing for their latest acquisition.
Up 20% HOLD.

Last week we went 7 up and 8 down. LINN.ob holds first place on our “biggest dog” list followed by INFT, DWCH, ARIS.ob and PDLI. For the week, 2007 year-to-date, and since we started this Blog in January 2006 our model portfolio is +.1%,+5.8% and +22.1% respectively. Since inception we are 14 stocks up and 5 down (2 of which are down 5% or less).

Avatech released earnings last week. Valuation moved up 22% and stock price barely moved.

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

SPNC-(Buy price $10.65, Valuation $18-$20). Up $.52 to $11.01 last week. Shorts lost the battle last week. Earnings due out on February 22, before the market opens. We think that either this quarter or next we could see a significant revenue and stock price pop . Now up 3% so far. BUY.

QADI-(Buy price $6.93, Valuation $13.69 (was $13.73 and $11.86). Closed at $8.07, down $.09. Trading at 59% of valuation. Earnings due March 15th. No news. Has $1.07 in cash also. Up 17% so far. HOLD.

PDLI-(Buy price $19.31, Valuation > $30)–Closed at $19.16, down $.42. Earnings due out on February 21st after the market close. This remains a very volatile stock. Now down 1%. BUY.

MIVA-(Buy price $3.80, Valuation $7.52 (was $7.38 and $9.10)). MIVA closed at $4.34, down $.06. No news last week. Now up 14%. HOLD.

DWCH-(Buy price $3.21 (averaged down from $3.66), Valuation $8.32 (was $7.50, $7.63, $9.31)). Closed at $2.90, down $.16 for the week. Now down 10%. BUY.

INFT-(Buy price $4.11, Valuation $6.13 (was $6.95, $6.86)). Down $.04 to $3.60 last week. Has $2.64 per share in cash. Price objective $5.50. Now down 12%. HOLD.

MOBI-(Buy price $6.68 (averaged down from $7.08), Valuation $12.82, was $12.69). Up $.05 to $7.05 last week. We are now trading at 55% of our valuation and cash is 41% of the market cap. Up 6%. HOLD.

RITT-(Buy price $1.00, Valuation $3.36 (Was $2.69). No news. Closed up $.07 at $1.40 last week. Up 40%. HOLD.

PARL-(Buy price $6.65, Valuation $13.77). PARL closed at $6.79, down $.46 last week. Price fell last week after the $1.02 run-up the previous week. We think the stock price will vacilate for a while until we get some more news. Up 2%. HOLD.

OB-abies

ARIS.ob-(Buy price $2.06, Valuation $5.28 (was $5.28, $5.21)). Closed at $1.95, down $.05 last week. This stock is still illiquid, although volume does seem to be increasing over the last couple of weeks, so price moves are fairly meaningless at this point. Now down 5% so far. Still a Huge valuation gap here.

LINN.ob-(Buy price $.36, Valuation $.62 (was $.66 and before that-$.79)). Closed at $.30, up $.03 last week. Volume was a “huge” 190,000 shares on Friday. Good to see some interest here. Still trading at only 48% of our current valuation. Down 17%. HOLD until we get some revenue growth and stop losing money (same story as last quarter).

OPTO.ob-(Buy price $1.25, Valuation $2.89 (was $2.54 and 2.88)). Closed at $1.70, up $.05. Has $.44 in cash per share also. Price continues to creep up and there seems to be a lack of sellers. Maybe we will see north of $2.00 this year. 36% gain so far. HOLD.

AVSO.ob-(Buy price $1.19, NEW Valuation $3.29 (was $2.69, $3.36, $3.81)). Stock closed at $1.66, up $.03. Now up 40%. See our post earlier this week on their earnings release. Valuation jumped 22%, which is a good sign after 2 previous drops. HOLD.

CTIG.ob-(Buy price $.27 ask, Valuation $1.13 (Was $1.05, $.82)). Ask price fell $.01 to $.34. Closed at $.34. Cash is (was) $.24 per share. Eight weeks ago CTI announced the purchase of Ryder Systems LTD. an international provider of electronic and on-line billing solutions and developer of VoIP business applications. Seven weeks ago they filed an 8-K, with details of the financing they got to fund the $11 million purchase–but still no details of what they bought. Now up 26% so far (based on ask price). HOLD until we see what we just bought.

IYXI.ob-(Buy price $1.91, Valuation–over $3.00). Closed up $.04 at $2.30, up 20% to date. Still waiting for the “attractive cash offer” that management says is coming in February. Hopefully it will be attractive by our standards and be at least $3 per share–so we can book at least a 50% gain on this one. Bank debt is now scheduled for repayment by March 31, 2007 and they have arranged financing for their latest acquisition. HOLD.

AVSO.ob posted Q2 results (December ending quarter) yesterday and they were good, in our opinion. Revenues grew 31% to $12.4 million, but EPS fell to $.02 per share, versus $.05 per share last year as their investment in more sales folk has depressed short term earnings. They did also lower revenue guidance to $51-$55 million in this fiscal year (ending June 30, 2007). So why is this all good? Because our valuation rose 22% to $3.29 per share from the previous $2.69 per share. At todays closing price of $1.66, AVSO is trading at only 50% of our valuation which makes it an outstanding value. If you don’t have this one at a lower price, we would pick some up for the next 12 month ride.

Last week we went 8 up, 5 down and 2 even. LINN.ob holds first place on our “biggest dog” list followed by INFT, DWCH, ARIS.ob and SPNC. For the week, 2007 year-to-date, and since we started this Blog in January 2006 our model portfolio is +2.8%,+5.7% and +22.0% respectively. Since inception we are 14 stocks up and 5 down (3 of which are down 5% or less). The DOW, NASDAQ and the S&P 500 are all up 2% or less so far in 2007.

Parlux and MIVA news last week. Also, we are noticing more interest (share volume) in some of our thinly traded stocls, like CTIG.ob, ARIS.ob, MOBI, DWCH. We are finding it hard to find new value stocks over the past couple of months (although we think we have 1 or 2 that we might write about shortly), other than the ones we already have, so maybe others are finding that ours are looking pretty good relative to the stock universe.

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

SPNC-(Buy price $10.65, Valuation $18-$20). Down $.48 to $10.49 last week. Shorts won the battle last week. Prospects are really great for this company. No news. Now down 2% so far. BUY.

QADI-(Buy price $6.93, Valuation $13.69 (was $13.73 and $11.86). Closed at $8.16, down $.01. Trading at 60% of valuation. Earnings due March 15th. No news. Has $1.07 in cash also. Up 18% so far. HOLD.

PDLI-(Buy price $19.31, Valuation > $30)–Closed at $19.58, down $.93. No news. This remains a very volatile stock. Now up only 2%. BUY.

MIVA-(Buy price $3.80, Valuation $7.52 (was $7.38 and $9.10)). MIVA closed at $4.40, up $.08. MIVA announced a “restructuring plan” last week. They expect a $4 million charge in Q1, but will save $10 million a year. Right move. Could be prettying this up for a sale. Now up 16%. HOLD.

DWCH-(Buy price $3.21 (averaged down from $3.66), Valuation $8.32 (was $7.50, $7.63, $9.31)). Closed at $3.06, up $.30 for the week. Volume “soared” on Friday to 44,000 shares–big for this stock. With our “double-up” on this one, now down “only” 5%. BUY.

INFT-(Buy price $4.11, Valuation $6.13 (was $6.95, $6.86)). Down $.13 to $3.64 last week. Has $2.64 per share in cash. Price objective $5.50. Now down 11%. HOLD.

MOBI-(Buy price $6.68 (averaged down from $7.08), Valuation $12.82, was $12.69). Up $.50 to $7.00 last week. There seems to be some decent accumulation going on here. So we are now trading at 55% of our valuation and cash is 41% of the market cap. Up 5%. BUY.

RITT-(Buy price $1.00, Valuation $3.36 (Was $2.69). Interest seems to have died down a bit last week, but this is still a good one we think. Closed down $.06 at $1.33 last week. Up 33%. HOLD.

PARL-(Buy price $6.65, Valuation $13.77). PARL closed at $7.25, up $1.02 last week. We never got to cast our vote in the Proxy contest–they announced that all the lawsuits were dropped, the CEO resigned and the Board of Directors will be changed significantly. The CEO got a severance deal that will hurt short-term earnings, but we like the trade. Part of the agreement was a deal that Nussdorf would not try to buy the company over the next 2 years–unless he offers at least $11 per share. Not too far from what we think PARL is worth. Wish we had doubled up on this in the $5 range, but at least we are in positive territory again. Up 9%. HOLD.

OB-abies

ARIS.ob-(Buy price $2.06, Valuation $5.28 (was $5.28, $5.21)). Closed at $2.00, unchanged last week. Their OC-Net acquisition looks pricey to us. If ARIS was selling at the multiple of sales they paid, it would be a $5 stock. We are maintaining a HOLD on this one for now, until we see some results. This stock is still illiquid, although we actually traded 14,000 shares on Friday, so price moves are fairly meaningless at this point. Now down 3% so far. Still a Huge valuation gap here.

LINN.ob-(Buy price $.36, Valuation $.62 (was $.66 and before that-$.79)). Closed at $.27, unchanged last week. Still trading at only 44% of our current valuation. Down 25%. HOLD until we get some revenue growth and stop losing money (same story as last quarter).

OPTO.ob-(Buy price $1.25, Valuation $2.89 (was $2.54 and 2.88)). Closed at $1.65, up $.05. Has $.44 in cash per share also. Volume dried up last week, but the price held firm. We think this is a good sign of some favorable events ahead. Maybe we will see north of $2.00 this year. 32% gain so far. HOLD.

AVSO.ob-(Buy price $1.19, Valuation $2.69 (was $3.36, $3.81)). Stock closed at $1.63, up $.15. Now up 37%. No significant news last week. HOLD.

CTIG.ob-(Buy price $.27 ask, Valuation $1.13 (Was $1.05, $.82)). Ask price jumped $.07 to $.35. Closed at $.35. CTIG actually traded 140,000 shares on Friday. Yikes! Not a lot of dollars of course, but at least some interest. Maybe somebody knows what they bought, and likes it. Cash is (was) $.24 per share. Seven weeks ago CTI announced the purchase of Ryder Systems LTD. an international provider of electronic and on-line billing solutions and developer of VoIP business applications. Six weeks ago they filed an 8-K, with details of the financing they got to fund the $11 million purchase–but still no details of what they bought. Now up 30% so far (based on ask price). HOLD until we see what we just bought.

IYXI.ob-(Buy price $1.91, Valuation–over $3.00). Closed up $.09 at $2.26, up 18% to date. Still waiting for the “attractive cash offer” that management says is coming in February. Hopefully it will be attractive by our standards and be at least $3 per share–so we can book at least a 50% gain on this one. Bank debt is now scheduled for repayment by March 31, 2007 and they have arranged financing for their latest acquisition. HOLD.

Last week we went 9 up, 6 down. LINN.ob moved into first place on our “biggest dog” list by a fraction over DWCH. INFT, PARL, ARIS.ob and MOBI follow them. For the week, 2007 year-to-date, and since we started this Blog in January 2006 our model portfolio is +2.9%,+.2% and +15.7% respectively. Since inception we are 13 stocks up and 6 down (4 of which are down 10% or less).

Optio (OPTO.ob) finally looks like it has cracked the $1.50 level it has reached several times in the past. It even hit $1.80 last week before closing back down at $1.60. Even so, volume has picked up significantly and maybe this one is finally being “discovered”.

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

SPNC-(Buy price $10.65, Valuation $18-$20). Up $.68 to $10.97 last week. Shorts lost the battle last week. Prospects are really great for this company. No news. Now up 3% so far. BUY.

QADI-(Buy price $6.93, Valuation $13.69 (was $13.73 and $11.86). Closed at $8.17, up $.07. Trading at 60% of valuation. Earnings due March 15th. No news. Has $1.07 in cash also. Up 18% so far. HOLD.

PDLI-(Buy price $19.31, Valuation > $30)–Closed at $20.51, down $.42. No news. This remains a very volatile stock. Now up 6%. HOLD.

MIVA-(Buy price $3.80, Valuation $7.52 (was $7.38 and $9.10)). MIVA closed at $4.32, up $.15. Now up 14%. HOLD.

DWCH-(Buy price $3.66, NEW Valuation $8.32 (was $7.50, $7.63, $9.31)). Closed at $2.76, up $.09 for the week, now down 25%. See our post earlier this week on the earnings report. With the valuation moving up, and the price now only 33% of our valuation, we are going to officially double up on this one at $2.76. BUY.

INFT-(Buy price $4.11, NEW Valuation $6.13 (was $6.95, $6.86)). Down $.07 to $3.77 last week. Has $2.64 per share in cash. See our post earlier this week on INFT’s earning report. With the valuation moving down again, our hope here is that all these big funds that seem to be buying this stock know what they are doing and INFT is being prepped for a sale in the near future. Price objective $5.50. Earnings due on January 31st. Now down 8%. HOLD.

MOBI-(Buy price $6.68 (averaged down from $7.08), Valuation $12.82, was $12.69). Up $.22 to $6.50 last week. The stock got dumped down below $6 last week, but rebounded nicely by Fridays to end up, on the week. Some large holder looks like they got frustrated with the stock and dumped a bunch on Thursday (876,000 shares) So we are now trading at 51% of our valuation and cash is 41% of the market cap. Down 3%. BUY.

RITT-(Buy price $1.00, NEW Valuation $3.36 (Was $2.69). See our post earlier this week on their earnings report. It looked good to us. Closed up $.14 at $1.39 last week. Up 39%. HOLD.

PARL-(Buy price $6.65, Valuation $13.77). PARL closed at $6.23, up $.48 last week. We got our Proxy card last week and are voting for Nussdorf. Parlux signed a new fragrance deal announced on Friday. Wish we recognized the name! Down 6%. This remains a BUY.

OB-abies

ARIS.ob-(Buy price $2.06, Valuation $5.28 (was $5.28, $5.21)). Closed at $2.00, down $.02 last week. Their OC-Net acquisition looks pricey to us. If ARIS was selling at the multiple of sales they paid, it would be a $5 stock. We are slapping a HOLD on this one for now, until we see some results. This stock is still illiquid, so price moves are fairly meaningless at this point. Now down 3% so far. Still a Huge valuation gap here.

Linn.ob-(Buy price $.36, Valuation $.62 (was $.66 and before that-$.79)). Closed at $.27, down $.01 last week. Still trading at only 44% of our current valuation. Down 25%. HOLD until we get some revenue growth and stop losing money (same story as last quarter).

OPTO.ob-(Buy price $1.25, Valuation $2.89 (was $2.54 and 2.88)). Closed at $1.60, up $.11. Has $.44 in cash per share also. Looks like OPTIO is being discovered. It got up to $1.80 last week on some good volume. Maybe we will see north of $2.00 this year. 28% gain so far. HOLD.

AVSO.ob-(Buy price $1.19, Valuation $2.69 (was $3.36, $3.81)). Stock closed at $1.48, up $.02. Now up 24%. No significant news last week. HOLD.

CTIG.ob-(Buy price $.27 ask, Valuation $1.13 (Was $1.05, $.82)). Ask price was down $.015 at $.28. Closed at $.26. Cash is (was) $.24 per share. Six weeks ago CTI announced the purchase of Ryder Systems LTD. an international provider of electronic and on-line billing solutions and developer of VoIP business applications. Five weeks ago they filed an 8-K, with details of the financing they got to fund the $11 million purchase–but still no details of what they bought. Now up 4% so far (based on ask price). HOLD until we see what we just bought.

IYXI.ob-(Buy price $1.91, Valuation–over $3.00). Closed down $.11 at $2.17, up 14% to date. Still waiting for the “attractive cash offer” that management says is coming. Hopefully it will be attractive by our standards and be at least $3 per share–so we can book at least a 50% gain on this one. Bank debt is now scheduled for repayment by March 31, 2007 and they have arranged financing for their latest acquisition. HOLD.