Last week we went 7 up and 6 down and 1 even. LINN.ob holds first place on our “biggest dog” list (by far) followed by PARL, BDR, OPTO.ob, ILOG, SPNC and ARIS.ob. For the week, 2007 year-to-date, and since we started this Blog in January 2006, our model portfolio is +1.8.0%,+21.9% and +40.6% respectively. Since inception we are now 17 stocks up and 7 down (4 of which are down less than 10%).

We were up 1.8% this past week and are now up 21.9% so far in 2007. The DOW, NASDAQ and the S+P 500 were all up with gains ranging from 1.6% (DOW) to 2.1% (NASDAQ) last week, and are all now up from 8.0% (S+P 500) to 9.5% (DOW) for the year. We are still are up more than double all the averages in 2007.

Since inception we have closed out the following positions:

2006-NTCT +44%
2006-ONXS +11% (Buyout offer)
2006-DTLK +41%
2006-CAW +21% (Buyout offer)
2007-IYXI.ob +44% (Buyout offer)
2007-MOBI +47% (Buyout offer)
2007-INFT +11% (Buyout offer)
2007-RITT +62%
2007-MIVA +55%
2007 DTLK +25% (2 weeks)

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

For the 10 stocks that we have closed out in 2006 and 2007 the average gain was 35%. We are tired of watching our stocks go up–and then down. So we are planning to take profits a bit sooner than in 2006. We have already closed out 6 positions in 2007 compared to 4 in all of 2006.

Not much news last week except for OPTO.ob, earnings and the LINN.ob proxy fight.

Spectranetics (SPNC-Recommended 9/2/2006)
Buy price $10.65, Valuation $18-$20
Down $.27 to $10.02 last week.
Short interest is 4.4 million shares. We are just waiting for FDA approval. If the TURBO-Booster is approved (no reason to expect it will not be), this should be huge. No impact from the 3 analysts presentations last week.
Now down 6% so far. BUY.

QAD Inc. (QADI-Recommended 6/14/2006)
Buy price $6.93, Valuation $11.27 (was $15.92, $13.69, $13.73 and $11.86)
Closed at $8.26, up $.04.
Our valuation has fallen from $15.92 to $11.27, but if they can hit their guidance for the year, the valuation would be approximately $14.60–72% above the current price. But since they seem to have trouble hitting their numbers–we will hold for now.
No news
Up 19% so far. HOLD.

PDL BioPharma Inc. (PDLI-Recommended 5/21/2006)
Buy price $19.31, Valuation > $30
Closed at $24.68, down $.10.
If this reaches $30, without a buy-out, we would sell.
Activist investment firm Third Point LLC, owns 11.2 million shares or 9.7% of the company and has more than $200 million invested. They continue to exert pressure on PDL to improve shareholder value. This however, remains a very volatile stock.
Now up 28%. HOLD.

DataWatch Corp. (DWCH-Recommended 2/12/2006)
Buy price $3.21 (averaged down from $3.66), Valuation $9.20 (was $8.32, $7.50, $7.63, $9.31)
Closed at $5.24, up $.21 for the week.
If this gets to $7 we would sell.
No news.
Now up 63%. HOLD.

Parlux Fragrances (PARL-Recommended 11/30/2006)
Buy price $6.12 (was $6.65 before double up), Valuation $8.63 (Was $13.77)
PARL closed at $4.55, down $.07 last week.
No news. New management needs to get to work on this one fast.
The new management has 2.2 million reasons to make this stock go up. Glenn Nussdorf paid $6 for his shares.
Down 26%. HOLD.

Blonder Tongue Laboratories (BDR-Recommended 3/4/2007)
Buy price $1.83, Valuation $4.01 (was $5.12, $5.88).
Closed at $1.60 up $.04 for the week.
Our valuation has dropped to $4.01. BDR is still cheap in our opinion, but they need a decent quarter to get this stock moving up.
No news.
Trading at 40% of our valuation.
Down 13%. HOLD

ILOG SA (ILOG-recommended 3/26/2007)
Buy price $13.60, Valuation $20.99 (was $20.52)
Closed at $12.62 last week, up $.37.
No news.
Down 7%. BUY

Celebrate Express (BDAY-recommended 4/17/2007
Buy Price $8.82, Valuation $18.18
Up $.26 to $8.91 last week
With the insider buying in the last couple of months, we like this stock alot.
Up 1%. BUY

Mediware (MEDW-Recommended 6/4/2007
Buy Price $6.98, Valuation $13.40
Down $.31 to $7.00 last week.
No news.
Up .3% BUY a little

OB-abies (Bulletin Board Listed Stocks)

ARI Networks (ARIS.ob-Recommended 8/19/2006)
Buy price $1.78 (was $2.06 before double up last week), Valuation $5.34 (was $5.03, $5.28, $5.28, $5.21)
Closed at $1.74, up $.24 last week.
Now down 2%. BUY. Still a Huge valuation gap here.

Lion Inc. (LINN.ob-Recommended 4/15/2006)
Buy price $.36, Valuation $.49 (was $.57, $.62, $.66 and before that-$.79)
Closed at $.19, up $.04 last week.
This one has cost us about 3% off our total 2007 performance so far.
One of the Lion co-founders and other shareholders have started a proxy contest to get elected to the Board at the shareholders meeting next week (June 20). Obviously they are not happy with the company, or stock performance. With the cost cutting measures announced last week–maybe the proxy contest will liven the stock price up a bit. Would like to at least cut our losses on this one.
We will give LION another quarter to see if they can turn things around.
Down 47%. HOLD until we get some revenue growth and stop losing money (same story as last quarter(s)).

OPTIO Software Inc. (OPTO.ob-Recommended 3/22/2006)
Buy price $1.25, NEW Valuation $2.28 (was $2.89, $2.89, $2.54 and 2.88)
Closed at $1.15, down $.19 last week.
The disappointing earnings report last week knocked OPTO down below our buy price.
Has cash of $.44 per share–38% of the market cap.
Still hoping we will see north of $2.00 this year–but may not happen now unless next quarter rebounds with some decent numbers.
Down 8% so far. HOLD.

Avatech Solutions Inc. (AVSO.ob-Bought November 28, 2005)
Buy price $1.19,Valuation $3.25 (was $3.29 $2.69, $3.36, $3.81)
Stock closed at $1.20, down $.07.
Trading at 37% of our valuation.
No news.
Now up 1%. HOLD.

CTI Holdings (CTIG.ob-Recommended 2/25/2006)
Buy price $.27 ask, Valuation $1.29 (Was $1.42, $1.28 $1.13, $1.05, $.82)
Ask price unchanged last week at $.37. Closed at $.35.
This is still trading at only 29% of our latest valuation, but until the VOIP business stops losing money, we are not buyers–yet.
Only 400 shares traded all of last week.
Up 37% based on the ASK price

OPTO reported Q1 (4/30/07) reslts yesterday.
Stock fell $.17 to $1.15 per share.

Not what we would have liked. Revenues fell 9% from $6.9 million to $6.3 million. They lost $1.17 million compared to a loss of $54,000 last year. No good reasons for the miss, other than sales were bad essentially and they are working on it. They continue to waste cash buying back shares (like there is too much float–although the bad news did flush out 368,000 shares, more than 10X normal volume).

The bottom line is that our valuation has fallen from $2.89 to $2.28. Cash per share is now $.44 compared to $.47.

This is a HOLD for now. Still trading at about 50% of our valuation and cash is now 38% of the market cap.

Last week we went 5 up and 8 down and 1 even. LINN.ob holds first place on our “biggest dog” list (by far) followed by ARIS.ob, PARL, BDR, ILOG, SPNC and BDAY. For the week, 2007 year-to-date, and since we started this Blog in January 2006, our model portfolio is -3.3%,+20.1% and +38.6% respectively. Since inception we are now 17 stocks up and 7 down (3 of which are down less than 10%).

We were down 3.3% this past week and are now up 20.1% so far in 2007. The DOW, NASDAQ and the S+P 500 were all down with losses ranging from 1.5% (NASDAQ) to 1.9% (S+P 500) last week, and are all now up from 6.3% (S+P 500) to 7.7% (DOW) for the year. We are still are up more than double the averages in 2007 and triple the NASDAQ and S+P 500.

Since inception we have closed out the following positions:

2006-NTCT +44%
2006-ONXS +11% (Buyout offer)
2006-DTLK +41%
2006-CAW +21% (Buyout offer)
2007-IYXI.ob +44% (Buyout offer)
2007-MOBI +47% (Buyout offer)
2007-INFT +11% (Buyout offer)
2007-RITT +62%
2007-MIVA +55%
2007 DTLK +25% (2 weeks)

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

For the 10 stocks that we have closed out in 2006 and 2007 the average gain was 35%. We are tired of watching our stocks go up–and then down. So we are planning to take profits a bit sooner than in 2006. We have already closed out 6 positions in 2007 compared to 4 in all of 2006.

Not much news last week except for ARIS.ob, earnings.

Spectranetics (SPNC-Recommended 9/2/2006)
Buy price $10.65, Valuation $18-$20
Up $.20 to $10.29 last week.
Short interest is 4.4 million shares. We are just waiting for FDA approval. If the TURBO-Booster is approved (no reason to expect it will not be), this should be huge. SPNC announced 4 analyst presentations in June–2 next week.
Now down 3% so far. BUY.

QAD Inc. (QADI-Recommended 6/14/2006)
Buy price $6.93, Valuation $11.27 (was $15.92, $13.69, $13.73 and $11.86)
Closed at $8.22, down $.07.
Our valuation has fallen from $15.92 to $11.27, but if they can hit their guidance for the year, the valuation would be approximately $14.60–72% above the current price. But since they seem to have trouble hitting their numbers–we will hold for now.
No news
Up 19% so far. HOLD.

PDL BioPharma Inc. (PDLI-Recommended 5/21/2006)
Buy price $19.31, Valuation > $30
Closed at $24.78, down a whopping $2.82.
Wachovia downgrades PDLI last week. Said there were no short-term catalysts. How about Third Point?
If this reaches $30, without a buy-out, we would sell.
Activist investment firm Third Point LLC, owns 11.2 million shares or 9.7% of the company and has more than $200 million invested. They continue to exert pressure on PDL to improve shareholder value. This however, remains a very volatile stock.
Now up 28%. HOLD.

DataWatch Corp. (DWCH-Recommended 2/12/2006)
Buy price $3.21 (averaged down from $3.66), Valuation $9.20 (was $8.32, $7.50, $7.63, $9.31)
Closed at $5.03, down $.21 for the week.
If this gets to $7 we would sell.
No news.
Now up 57%. HOLD.

Parlux Fragrances (PARL-Recommended 11/30/2006)
Buy price $6.12 (was $6.65 before double up), Valuation $8.63 (Was $13.77)
PARL closed at $4.62, up $.13 last week.
No news. New management needs to get to work on this one fast.
The new management has 2.2 million reasons to make this stock go up. Glenn Nussdorf paid $6 for his shares.
Down 24%. HOLD.

Blonder Tongue Laboratories (BDR-Recommended 3/4/2007)
Buy price $1.83, Valuation $4.01 (was $5.12, $5.88).
Closed at $1.56 down $.09 for the week.
Our valuation has dropped to $4.01. BDR is still cheap in our opinion, but they need a decent quarter to get this stock moving up.
No news.
Trading at 39% of our valuation.
Down 15%. HOLD

ILOG SA (ILOG-recommended 3/26/2007)
Buy price $13.60, Valuation $20.99 (was $20.52)
Closed at $12.25 last week, down $.51.
No news.
Down 9.9%. BUY

Celebrate Express (BDAY-recommended 4/17/2007
Buy Price $8.82, Valuation $18.18
Down $.21 to $8.65 last week
With the insider buying in the last couple of months, we like this stock alot.
Down 2%. BUY

Mediware (MEDW-Recommended 6/4/2007
Buy Price $6.98, Valuation $13.40
Up $.33 to $7.31 last week.
No news.
Up 5% HOLD/BUY a little

OB-abies (Bulletin Board Listed Stocks)

ARI Networks (ARIS.ob-Recommended 8/19/2006)
Buy price $2.06, NEW Valuation $5.34 (was $5.03, $5.28, $5.28, $5.21)
Closed at $1.50, down $.40 last week.
Q3 earnings were announced on Thursday. Apparently they disappointed shareholders who dumped a huge (145,00) number of shares last week. Sales were up 15% to $4.1 million, but they lost $205,000 versus earning about $465,000 last year. OC-Net integration costs hurt earnings, but the company did not say by how much. Gross margins continued to be above 80%
The good news is that there are actually shares to be bought and our valuation moved UP to $5.34 per share and ARI is now trading at 28% of our valuation.
This is now a double up at $1.50. New avg. cost will be $1.78 next week.
Now down 27%. BUY. Still a Huge valuation gap here.

Lion Inc. (LINN.ob-Recommended 4/15/2006)
Buy price $.36, Valuation $.49 (was $.57, $.62, $.66 and before that-$.79)
Closed at $.15, even last week.
This one has cost us 3.5% off our total 2007 performance so far.
We will give LION another quarter to see if they can turn things around.
Down 58%. HOLD until we get some revenue growth and stop losing money (same story as last quarter(s)).

OPTIO Software Inc. (OPTO.ob-Recommended 3/22/2006)
Buy price $1.25, Valuation $2.89 (was $2.89, $2.54 and 2.88)
Closed at $1.34, up $.02 last week.
Has cash of $.47 per share–35% of the market cap.
Still hoping we will see north of $2.00 this year.
No news.
7% gain so far. BUY.

Avatech Solutions Inc. (AVSO.ob-Bought November 28, 2005)
Buy price $1.19,Valuation $3.25 (was $3.29 $2.69, $3.36, $3.81)
Stock closed at $1.27, up $.06.
Trading at 39% of our valuation.
No news.
Now up 6%. HOLD.

CTI Holdings (CTIG.ob-Recommended 2/25/2006)
Buy price $.27 ask, Valuation $1.29 (Was $1.42, $1.28 $1.13, $1.05, $.82)
Ask price dropped $.01 last week at $.37. Closed at $.35.
This is still trading at only 29% of our latest valuation, but until the VOIP business stops losing money, we are not buyers–yet/
Up 37% based on the ASK price

Mediware Information Systems, Inc. (NASDAQ–MEDW)
Valuation-$13.40
Price June 1, 2007-$6.98

I have been watching MEDW for a while, and the price has now fallen into our buying range.

Q3 results (3/31/2007) showed an 11% sales increase and $831,000 net income–$.10 per share (fully taxed and up from the prior year of $.08). There a bit over 8.4 million shares outstanding and they reported 73% gross margins and have $2.53 a share in cash (36% of market cap). There has been a lot of selling pressure of late, as the price has dropped from $8.60 at the end of April. Possibly a fund getting out. We just don’t see the reason for this drop.

With over $2.50 a share in cash, and these margins—and making money, we think this is a good bet.

We bought some this week at $6.99 and $6.95. Average daily trading volume has been nearly 30,000 shares.

We think anything under $7.00 is a good price.

MEDW is trading at 52% of our valuation.

About Mediware Information Systems, Inc.
Mediware delivers powerful software solutions that encapsulate patient care instructions, reinforce patient safety practices and improve efficiencies to lower costs. Mediware targets three primary areas of patient care — Medication Management, Perioperative Management and Blood Management (transfusion, inventory and donor practices) — with specialized solutions that are proven in more than 1,000 client installations. Mediware’s customers include prestigious hospitals, clinics, correctional institutions, blood centers and other public and private health care institutions throughout the world. For more information about Mediware products and services, visit our web site at http://www.mediware.com.

Last week we went 10 up and 3 down and 3 even. LINN.ob holds first place on our “biggest dog” list (by far) followed by PARL, BDR, ARIS.ob, ILOG and SPNC. For the week, 2007 year-to-date, and since we started this Blog in January 2006, our model portfolio is +4.1%,+23.4% and +42.4% respectively. Since inception we are now 17 stocks up and 6 down (4 of which are down less than 10%).

We were up 4.1% this past week and are now up 23.4% so far in 2007. The DOW, NASDAQ and the S+P 500 were all up with gains ranging from 1.2% (DOW) to up 2.2% (NASDAQ) last week, and are all now up from 8.2% (NASDAQ) to 9.7% (DOW) for the year. We are still are up more than double the averages in 2007.

Since inception we have closed out the following positions:

2006-NTCT +44%
2006-ONXS +11% (Buyout offer)
2006-DTLK +41%
2006-CAW +21% (Buyout offer)
2007-IYXI.ob +44% (Buyout offer)
2007-MOBI +47% (Buyout offer)
2007-INFT +11% (Buyout offer)
2007-RITT +62%
2007-MIVA +55%
2007 DTLK +25% (2 weeks)

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

For the 10 stocks that we have closed out in 2006 and 2007 the average gain was 35%. We are tired of watching our stocks go up–and then down. So we are planning to take profits a bit sooner than in 2006. We have already closed out 6 positions in 2007 compared to 4 in all of 2006.

Spectranetics (SPNC-Recommended 9/2/2006)
Buy price $10.65, Valuation $18-$20
Up $.14 to $10.09 last week.
Short interest is 4.4 million shares. No signiciant news. We are just waiting for FDA approval. If the TURBO-Booster is approved (no reason to expect it will not be), this should be huge.
Now down 5% so far. BUY.

QAD Inc. (QADI-Recommended 6/14/2006)
Buy price $6.93, Valuation $11.27 (was $15.92, $13.69, $13.73 and $11.86)
Closed at $8.29, up $.27.
We should have sold this at $10. Next time.
Our valuation has fallen from $15.92 to $11.27, but if they can hit their guidance for the year, the valuation would be approximately $14.60–72% above the current price. But since they seem to have trouble hitting their numbers–we will hold for now.
Up 20% so far. HOLD.

PDL BioPharma Inc. (PDLI-Recommended 5/21/2006)
Buy price $19.31, Valuation > $30
Closed at $27.60, up $.14.
The letter war continues between Third Point and PDLI management and Board. Price continues to increase.
If this reaches $30, without a buy-out, we would sell.
Activist investment firm Third Point LLC, owns 11.2 million shares or 9.7% of the company and has more than $200 million invested. They continue to exert pressure on PDL to improve shareholder value. This however, remains a very volatile stock.
Now up 43%. HOLD.

MIVA Inc. (MIVA-Recommended 3/18/2006)
Buy price $3.80, Valuation $9.00 (was $7.37, $7.52, $7.38 and $9.10)
SOLD last week at $5.90 for a 55% gain.

DataWatch Corp. (DWCH-Recommended 2/12/2006)
Buy price $3.21 (averaged down from $3.66), Valuation $9.20 (was $8.32, $7.50, $7.63, $9.31)
Closed at $5.24, up $.43 for the week.
If this gets to $7 we would sell.
No news.
Now up 63%. HOLD.

RiT Technologies (RITT-Recommended 11/12/2006)
Buy price $1.00, Valuation $1.95 (Was $3.36, $2.69)
SOLD last week at $1.62 for a 62% gain.

Parlux Fragrances (PARL-Recommended 11/30/2006)
Buy price $6.12 (was $6.65 before double up), Valuation $8.63 (Was $13.77)
PARL closed at $4.49, up $.08 last week.
No news. New management needs to get to work on this one fast.
The new management has 2.2 million reasons to make this stock go up. Glenn Nussdorf paid $6 for his shares.
Down 27%. HOLD.

Blonder Tongue Laboratories (BDR-Recommended 3/4/2007)
Buy price $1.83, Valuation $4.01 (was $5.12, $5.88).
Closed at $1.65 up $.02 for the week.
Our valuation has dropped to $4.01. BDR is still cheap in our opinion, but they need a decent quarter to get this stock moving up.
No news.
Trading at 41% of our valuation.
Down 10%. HOLD

ILOG SA (ILOG-recommended 3/26/2007)
Buy price $13.60, Valuation $20.99 (was $20.52)
Closed at $12.76 last week, down $.17.
No news.
Down 6%. BUY

Celebrate Express (BDAY-recommended 4/17/2007
Buy Price $8.82, Valuation $18.18
Up $.16 to $8.86 last week
With the insider buying in the last couple of months, we like this stock alot.
Up 1%. BUY

Datalink (DTLK-recommended 5/14/2007
Buy Price $5.20, Valuation $8.70
SOLD last week at $6.50 for a 25% gain in 2weeks.

OB-abies (Bulletin Board Listed Stocks)

ARI Networks (ARIS.ob-Recommended 8/19/2006)
Buy price $2.06, Valuation $5.03 (was $5.28, $5.28, $5.21)
Closed at $1.90, up $.10 last week.
Q3 earnings out on June 7th, after the close.
This stock is still illiquid, so price moves are fairly meaningless at this point.
Now down 8%. BUY. Still a Huge valuation gap here.

Lion Inc. (LINN.ob-Recommended 4/15/2006)
Buy price $.36, Valuation $.49 (was $.57, $.62, $.66 and before that-$.79)
Closed at $.15, even last week.
Our valuation has dropped 14% to $.49.
This one has cost us 3.5% off our total 2007 performance so far.
Lion announced some cost cutting last week–25% of staff and consolidating 2 offices. About time. Say they want to reach profitability ASAP.
We will give LION another quarter to see if they can turn things around.
Down 58%. HOLD until we get some revenue growth and stop losing money (same story as last quarter(s)).

OPTIO Software Inc. (OPTO.ob-Recommended 3/22/2006)
Buy price $1.25, Valuation $2.89 (was $2.89, $2.54 and 2.88)
Closed at $1.32, unchanged last week.
Has cash of $.47 per share–35% of the market cap.
Still hoping we will see north of $2.00 this year.
No news.
6% gain so far. BUY.

Avatech Solutions Inc. (AVSO.ob-Bought November 28, 2005)
Buy price $1.19,Valuation $3.25 (was $3.29 $2.69, $3.36, $3.81)
Stock closed at $1.21, down $.04.
Trading at 36% of our valuation.
Announced a traing partnership last week. Yawn, need some performance here to get attention. Bought some more last week at $1.21.
Now up 2%. HOLD.

CTI Holdings (CTIG.ob-Recommended 2/25/2006)
Buy price $.27 ask, NEW Valuation $1.29 (Was $1.42, $1.28 $1.13, $1.05, $.82)
Ask price was unchanged last week at $.38. Closed at $.35.
Volume was only 10,000 shares last week (again).
This is still trading at only 30% of our latest valuation, but until the VOIP business stops losing money, we are not buyers–yet/
Up 41% based on the ASK price

Still short of our valuation–but we will take the 55% profit.

We are taking our profits–maybe early, but you can never go too wrong taking them. We rode OPTO.ob, AVSO.ob, and QADI up-and held them to our regret (we still like them–but could have sold them and bought then back and banked the profit–like DTLK). Sell at $1.62 or better.

We recommend selling DTLK at $6.50 or better. We will take our 25% gain in 2 weeks and pocket it.

Last week we went 10 up and 5 down and 1 even. LINN.ob holds first place on our “biggest dog” list (by far) followed by PARL, ARIS.ob, BDR, SPNC, ILOG and BDAY. For the week, 2007 year-to-date, and since we started this Blog in January 2006, our model portfolio is +1.4%,+19.3% and +37.6% respectively. Since inception we are now 16 stocks up and 7 down (3 of which are down less than 10%).

We were up 1.35% this past week (primarily driven by gains in RITT, MIVA and DTLK) and are now up 19.3% so far in 2007. The DOW, NASDAQ and the S+P 500 ranged from down .5% (S+P) to even (NASDAQ) last week, and are all now up from 5.9% (NASDAQ) to 8.4% (DOW) for the year. We are still are up more than double the averages in 2007 and triple NASDAQ.

Since inception we have closed out the following positions:

2006-NTCT +44%
2006-ONXS +11% (Buyout offer)
2006-DTLK +41%
2006-CAW +21% (Buyout offer)
2007-IYXI.ob +44% (Buyout offer)
2007-MOBI +47% (Buyout offer)
2007-INFT +11% (Buyout offer)

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

Really not much news last week other than a few product announcements.

Spectranetics (SPNC-Recommended 9/2/2006)
Buy price $10.65, Valuation $18-$20
Up $.14 to $9.95 last week.
Short interest increased another 300,000 shares in May to 4.4 million shares, keeping the pressure on the any increase in share price. No signiciant news. We are just waiting for FDA approval. If the TURBO-Booster is approved (no reason to expect it will not be), this should be huge.
Now down 7% so far. BUY.

QAD Inc. (QADI-Recommended 6/14/2006)
Buy price $6.93, Valuation $11.27 (was $15.92, $13.69, $13.73 and $11.86)
Closed at $8.02, down $.43.
The slide continues. We should have sold this at $10. Next time.
Our valuation has fallen from $15.92 to $11.27, but if they can hit their guidance for the year, the valuation would be approximately $14.60–72% above the current price. But since they seem to have trouble hitting their numbers–we will hold for now.
Up 16% so far. HOLD.

PDL BioPharma Inc. (PDLI-Recommended 5/21/2006)
Buy price $19.31, Valuation > $30
Closed at $27.46, up $1.10.
The letter war continues between Third Point and PDLI management and Board. Price continues to increase.
If this reaches $30, without a buy-out, we would sell.
Activist investment firm Third Point LLC, owns 11.2 million shares or 9.7% of the company and has more than $200 million invested. They continue to exert pressure on PDL to improve shareholder value. This however, remains a very volatile stock.
Now up 42%. HOLD.

MIVA Inc. (MIVA-Recommended 3/18/2006)
Buy price $3.80, Valuation $9.00 (was $7.37, $7.52, $7.38 and $9.10)
Closed at $5.17, up $.47 last week.
MIVA continued its move up in sympathy to Microsofts take-over of AQuantive at a huge premium. Hopefully they will get their numbers moving in the right direction in the next quarter or two and we will see MIVA’s stock move a lot closer to our valuation.
Now up 36%. HOLD.

DataWatch Corp. (DWCH-Recommended 2/12/2006)
Buy price $3.21 (averaged down from $3.66), Valuation $9.20 (was $8.32, $7.50, $7.63, $9.31)
Closed at $4.81, up $.05 for the week.
If this gets to $7 we would sell.
No news.
Now up 50%. HOLD.

RiT Technologies (RITT-Recommended 11/12/2006)
Buy price $1.00, Valuation $1.95 (Was $3.36, $2.69)
Closed up $.20 at $1.65 last week.
One good quarter should drive the valuation back over $3 and hopefully the price over $2.
Up 65%. HOLD.

Parlux Fragrances (PARL-Recommended 11/30/2006)
Buy price $6.12 (was $6.65 before double up), Valuation $8.63 (Was $13.77)
PARL closed at $4.41, down $.37 last week.
The slide continues. We bought a little more on Friday–just to trade. New management needs to get to work on this one fast.
The new management has 2.2 million reasons to make this stock go up. Glenn Nussdorf paid $6 for his shares.
Down 28%. HOLD.

Blonder Tongue Laboratories (BDR-Recommended 3/4/2007)
Buy price $1.83, Valuation $4.01 (was $5.12, $5.88).
Closed at $1.63 up $.03 for the week.
Our valuation has dropped to $4.01. BDR is still cheap in our opinion, but they need a decent quarter to get this stock moving up.
Trading at 41% of our valuation.
Down 11%. HOLD

ILOG SA (ILOG-recommended 3/26/2007)
Buy price $13.60, Valuation $20.99 (was $20.52)
Closed at $12.93 last week, up $.33.
No news.
Down 5%. BUY

Celebrate Express (BDAY-recommended 4/17/2007
Buy Price $8.82, Valuation $18.18
Up $.14 to $8.70 last week
With the insider buying in the last couple of months, we like this stock alot.
Down 1%. BUY

Datalink (DTLK-recommended 5/14/2007
Buy Price $5.20, Valuation $8.70
Up $.54 to $6.41 last week
DTLK continued to move up fast over the past 2 weeks
Trading at 74% of our valuation.
UP 23%. HOLD

OB-abies (Bulletin Board Listed Stocks)

ARI Networks (ARIS.ob-Recommended 8/19/2006)
Buy price $2.06, Valuation $5.03 (was $5.28, $5.28, $5.21)
Closed at $1.80, up $.03 last week.
Q3 earnings out on June 7th, after the close.
This stock is still illiquid, so price moves are fairly meaningless at this point.
Now down 12%. BUY. Still a Huge valuation gap here.

Lion Inc. (LINN.ob-Recommended 4/15/2006)
Buy price $.36, Valuation $.49 (was $.57, $.62, $.66 and before that-$.79)
Closed at $.15, down another $.02 last week.
Our valuation has dropped 14% to $.49.
This one has cost us 3% off our total 2007 performance so far.
Lion is a product line that needs to be sold to a bigger online player.
We will give LION another quarter to see if they can turn things around.
Down 58%. HOLD until we get some revenue growth and stop losing money (same story as last quarter(s)).

OPTIO Software Inc. (OPTO.ob-Recommended 3/22/2006)
Buy price $1.25, Valuation $2.89 (was $2.89, $2.54 and 2.88)
Closed at $1.32, unchanged last week.
Has cash of $.47 per share–35% of the market cap.
Still hoping we will see north of $2.00 this year.
No news.
6% gain so far. BUY.

Avatech Solutions Inc. (AVSO.ob-Bought November 28, 2005)
Buy price $1.19,Valuation $3.25 (was $3.29 $2.69, $3.36, $3.81)
Stock closed at $1.25, down $.15.
Trading at 38% of our valuation.
No news.
Now up 5%. HOLD.

CTI Holdings (CTIG.ob-Recommended 2/25/2006)
Buy price $.27 ask, NEW Valuation $1.29 (Was $1.42, $1.28 $1.13, $1.05, $.82)
Ask price fell $.01 to $.38. Closed at $.39.
Volume was only 10,000 shares last week and that was me.
This is still trading at only 30% of our latest valuation, but until the VOIP business stops losing money, we are not buyers–yet/
Up 41% based on the ASK price. HOLD

Last week we went 8 up and 9 down. LINN.ob holds first place on our “biggest dog” list (by far) followed by PARL, ARIS.ob, BDR, SPNC, ILOG and BDAY. For the week, 2007 year-to-date, and since we started this Blog in January 2006, our model portfolio is +2.8%,+17.9% and +36.1% respectively. Since inception we are now 15 stocks up and 7 down (3 of which are down less than 10%).

We were up 2.8% this past week (driven by a 30% gain in INFT) and are now up 17.9% so far in 2007. The DOW, NASDAQ and the S+P 500 ranged from down .1% (NASDAQ) to up 1.7% (DOW) last week, and are all now up from 5.9% to 8.8% for the year. We are still are up more than double the averages in 2007 and triple NASDAQ.

Since inception we have closed out the following positions:

2006-NTCT +44%
2006-ONXS +11% (Buyout offer)
2006-DTLK +41%
2006-CAW +21% (Buyout offer)
2007-IYXI.ob +44% (Buyout offer)
2007-MOBI +47% (Buyout offer)
2007-INFT +11% (Buyout offer)

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

We sold INFT last week after their “take-under” offer for an 11% total gain and we added DTLK to our portfolio last week again.

QADI, CTIG.ob, AVSO.ob, LINN.ob and BDR all annouced earnings last week.

Spectranetics (SPNC-Recommended 9/2/2006)
Buy price $10.65, Valuation $18-$20
Down $.03 to $9.81 last week.
More manipulation last week as the price was driven down to $9, but rebounded on Friday to post a small loss for the week. No signiciant news. We are just waiting for FDA approval. If the TURBO-Booster is approved (no reason to expect it will not be), this should be huge.
SPNC is presenting at Citigroup Healthcare Conference on May 23rd.
Now down 8% so far. BUY.

QAD Inc. (QADI-Recommended 6/14/2006)
Buy price $6.93, Valuation $11.27 (was $15.92, $13.69, $13.73 and $11.86)
Closed at $8.45, down $.92.
Earnings last week were not great, but not bad. Our valuation did plummet from $15.92 to $11.27, but if they can hit their guidance for the year, the valuation would be approximately $14.60–72% above the current price. But since they seem to have trouble hitting their numbers–we will hold for now.
Up 22% so far. HOLD.

PDL BioPharma Inc. (PDLI-Recommended 5/21/2006)
Buy price $19.31, Valuation > $30
Closed at $26.36, up $.33.
PDL’s Chairman wrote a wishy, washy letter to Third Point last week after a phone call with them. Third Points move now.
PDL will also be attending Citgroups Heathcare conference on May 23rd.
Activist investment firm Third Point LLC, owns 11.2 million shares or 9.7% of the company and has more than $200 million invested. They continue to exert pressure on PDL to improve shareholder value. This however, remains a very volatile stock.
Now up 37%. HOLD.

MIVA Inc. (MIVA-Recommended 3/18/2006)
Buy price $3.80, Valuation $9.00 (was $7.37, $7.52, $7.38 and $9.10)
Closed at $4.70, up $.48 last week.
MIVA moved up in sympathy to Microsofts take-over of AQuantive last week at a huge premium. Hopefully they will get their numbers moving in the right direction in the next quarter or two and we will see MIVA’s stock move a lot closer to our valuation.
Now up 22%. HOLD.

DataWatch Corp. (DWCH-Recommended 2/12/2006)
Buy price $3.21 (averaged down from $3.66), Valuation $9.20 (was $8.32, $7.50, $7.63, $9.31)
Closed at $4.76, down $.19 for the week.
If this gets to $7 we would sell.
No news.
Now up 48%. HOLD.

Inforte Corp. (INFT-Bought January 13, 2006)
Buy price $3.74 (averaged down from $4.11), Valuation $6.13 (was $6.95, $6.86)
Sold at $4.15 on their buyout last week for an 11% gain. As we said before–at least we didn’t lose money on this one.

RiT Technologies (RITT-Recommended 11/12/2006)
Buy price $1.00, Valuation $1.95 (Was $3.36, $2.69)
Closed up $.03 at $1.45 last week.
One good quarter should drive the valuation back over $3 and hopefully the price over $2.
Up 45%. HOLD.

Parlux Fragrances (PARL-Recommended 11/30/2006)
Buy price $6.12 (was $6.65 before double up), Valuation $8.63 (Was $13.77)
PARL closed at $4.78, down $.07 last week.
Appointed new CEO and CFO last week. They need to get to work on this one fast.
The new management has 2.2 million reasons to make this stock go up. Glenn Nussdorf paid $6 for his shares.
Down 22%. HOLD.

Blonder Tongue Laboratories (BDR-Recommended 3/4/2007)
Buy price $1.83, NEW Valuation $4.01 (was $5.12, $5.88).
Closed at $1.60 down $.10 for the week.
Earnings announced last week. Not that good. Our valuation plunged to $4.01. BDR is still cheap in our opinion, but they need a decent quarter to get this stock moving up.
Trading at 40% of our valuation.
Down 13%. HOLD

ILOG SA (ILOG-recommended 3/26/2007)
Buy price $13.60, Valuation $20.99 (was $20.52)
Closed at $12.60 last week, down $.10.
No news. This one makes INFT and CTIG.ob look like high volume trading stocks.
Down 7%. BUY

Celebrate Express (BDAY-recommended 4/17/2007
Buy Price $8.82, Valuation $18.18
Down $.47 to $8.56 last week
Stephen Roseman bought more stock last week at $8.96. Thinking of buying more myself.
With the insider buying in the last couple of months, we like this stock alot.
Down 3%. BUY

Datalink (DTLK-recommended 5/14/2007
Buy Price $5.20, Valuation $8.70
Up $.67 to $5.87 last week
DTLK moved up fast last week after dropping briefly below $5.20 last Monday.
Trading at 67% of our valuation (compared to 60% last Monday).
UP 13%. HOLD

OB-abies (Bulletin Board Listed Stocks)

ARI Networks (ARIS.ob-Recommended 8/19/2006)
Buy price $2.06, Valuation $5.03 (was $5.28, $5.28, $5.21)
Closed at $1.77, down $.13 last week.
No news.
This stock is still illiquid, so price moves are fairly meaningless at this point.
Now down 14%. BUY. Still a Huge valuation gap here.

Lion Inc. (LINN.ob-Recommended 4/15/2006)
Buy price $.36, Valuation $.49 (was $.57, $.62, $.66 and before that-$.79)
Closed at $.17, up $.01 last week.
Another poor quarter announced last week, causing our valuation to drop 14% to $.49.
Sales fell another 10% and their losses increased to $665,000 for the quarter.
Now trading at 35% of our current valuation.
This one has cost us 3% off our total 2007 performance so far.
We will give LION another quarter to see if they can turn things around.
Down 53%. HOLD until we get some revenue growth and stop losing money (same story as last quarter(s)).

OPTIO Software Inc. (OPTO.ob-Recommended 3/22/2006)
Buy price $1.25, Valuation $2.89 (was $2.89, $2.54 and 2.88)
Closed at $1.32, up $.05 last week.
After weeks of relentless share price drops, we finally had an up week-barely.
Has cash of $.47 per share–35% of the market cap.
Still hoping we will see north of $2.00 this year.
No news.
6% gain so far. BUY.

Avatech Solutions Inc. (AVSO.ob-Bought November 28, 2005)
Buy price $1.19, NEW Valuation $3.25 (was $3.29 $2.69, $3.36, $3.81)
Stock closed at $1.40, up $.10.
AVSO got down to $1.11 last week, but rebounded.
AVSO had a decent quarter as sales rose 32%, but profit fell.
Still our valuation barely moved from $3.29 to $3.25.
Now up 18%. HOLD.

CTI Holdings (CTIG.ob-Recommended 2/25/2006)
Buy price $.27 ask, NEW Valuation $1.29 (Was $1.42, $1.28 $1.13, $1.05, $.82)
Ask price fell $.03 to $.39. Closed at $.39.
Volume was only 1,000 shares last week.
This was the first quarter that included the Ryder acquisition results.
Sales were up 64%, but they lost money-$600,000 or $.02 per share. All of the loss came from their investment in VOIP (voice-over-internet-protocol), which did not generate any revenue for the quarter. They plan to start selling VOIP this year. If this is sucessful, losses should shrink and sales accelerate even more.
This is still trading at only 30% of our latest valuation, but until the VOIP business stops losing money, we are not buyers–yet/
Up 44% based on the ASK price. HOLD