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.

RITT announced Q4 results also this morning. Sales up 17% over last quarter, were slightly profitable, gross margins increased from 50% to 54% and have $.44 of cash per share.
Valuation moved up 25% to $3.36 a share from the previous $2.69. Based on yesterdays closing price, of $1.40, we are up 40% on this one. HOLD, this could be good.

INFT released earnings last night. Noting to write home about at all. Sales up 4% YOY, operating “income” swung to a loss of $224,000. It looks like they are doing SOMETHING, although exactly what is the question. They wrote-off some old, bad investment and the related tax effects which caused an overall loss of $4.6 million in the quarter ($.40 per share). Also made the CFO the new President and CEO, although they don’t seem to say what is happening with the current CEO. So either they are preparing for a sale of the company (cleaning up the balance sheet and putting the finance guy in charge) or this is just a new way to get the current management higher pay and some cheap stock options. Valuation has dropped again. Now $6.13. Now a HOLD. Only good news is that they have $2.64 a share in cash–70% of the current market value. Still expect this to be sold, but $5.50 is looking more like $5 to me.

DWCH announced earning this morning. Looks like they may finally be turning things around. Sales of $5.776 million were up 22% from the prior year and earnings were positive. Albeit only $34,000 or $.01 per share after tax. Our new valuation is $8.32 per share, up from the $7.50 previously. Cautious buy on this one, assuming it does not break $3 today (we hope).

Last week we went 5 up, 9 down and 1 even. DWCH is still our biggest dog followed by LINN.ob,PARL, MOBI, INFT, SPNC and ARIS.ob. For the week, 2007 year-to-date, and since we started this Blog in January 2006 our model portfolio is -1.2%,-2.4% and +12.8% respectively.

Since we started last year we have recommended 19 stocks. We have sold 4 for an average gain of 28% and are holding 15 remaining stocks, 8 of which are up and 7 down. Over the past year CCA Industries had a takeover offer that it is still mulling over (we sold for a 21% gain on this “take-under”) and INYX (IYXI.ob) is in the process of a management buy-out. With a lot of private equity funds loaded with cash (and borrowing capacity) and the pool of attractively priced stocks getting smaller we are expecting a few more of our stocks to get offers in 2007. We have been actively screening stocks to find new recommendation but are not finding any that are as attractively priced as the ones we have right now (we are always thinking about a few though). We have missed a few that we were watching (TBV-AMEX for one–up almost 100%), but we would rather miss a few than take on too much risk.

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 $.45 to $10.29 last week. Shorts continue to control the vertical on this stock. Prospects are really great for this company. No news. Now down 3% so far. BUY.

QADI-(Buy price $6.93, Valuation $13.69 (was $13.73 and $11.86). Closed at $8.10, down $.02. Trading at only 59% of valuation. Earnings due March 15th. No news. Has $1.03 in cash also. Up 17% so far. HOLD.

PDLI-(Buy price $19.31, Valuation > $30)–Closed at $20.93, down $.82. No news. This remains a very volatile stock. Now up 8%. HOLD.

MIVA-(Buy price $3.80, Valuation $7.52 (was $7.38 and $9.10)). MIVA closed at $4.17, up $.08. Now up 10%. HOLD.

DWCH-(Buy price $3.66, Valuation $7.50 (was $7.63, $9.31)). Closed at $2.67, up $.16 for the week, now down 27%. Earnings due on January 30th. HOLD.

INFT-(Buy price $4.11, Valuation $6.95 (was $6.86)). Up $.20 to $3.84. Still has $2.52 per share in cash. On January 22, 2007 Royce Associates filed a 13G with the SEC disclosing holding of 1,090,600 shares or 9.16%. This is up from 596,000 shares held as of their previous filing in May 2006. Loeb Partners filed a 13Da on January 12, 2007 disclosing holding of 533,157 shares (4.46%) down from previous holding of 671,597 shares (5.49%). The Loeb reports are a bit confusing because the current 13D indicates that they have been buying INFT, not selling. Anyway, the holding indicate that these value investors see upside here. Also, given the size of their holdings and the low average daily trading volume of the stock, they are expecting an event that will allow them to move this kind of volume at a profit–like a take-over. Price objective $5.50. Earnings due on January 31st. Now down 7%. BUY.

MOBI-(Buy price $6.68 (averaged down from $7.08), New Valuation $12.82, was $12.69). Down $.30 to $6.28. Earnings came out last week and our valuation went up a tad to $12.82. Sales and earnings were up slightly from last year and they gave no stellar guidance. So we are now trading below 50% of our valuation and cash is 42% of the market cap. Time to officially double up on this one. Down 11%. BUY.

RITT-(Buy price $1.00, Valuation $2.69). Closed down $.02 at $1.25 last week. Earnings report scheduled for February 1st. Up 25%. HOLD.

PARL-(Buy price $6.65, Valuation $13.77). PARL closed at $5.75, down $.12 last week. The action continues to heat up. Now Parlux management is suing Nusdorf and Quality King to stop their current move to oust the Board and management. We will vote with Nussdorf. There seems to be too many catalysts for this to stay down for long. Down 14%. This remains a BUY.

OB-abies

ARIS.ob-(Buy price $2.06, Valuation $5.28 (was $5.28, $5.21)). Closed at $2.02, up $.02 last week. News last week! Maybe these guys are starting to wake up and try to increase shareholder value. They announced an aquisition last week. From their press release: “OC-Net provides website development and hosting services to the Power Sports market, which includes motorcycles, All Terrain Vehicles (ATV’s), snowmobiles, and personal watercraft. OC-Net is profitable with approximately $1.3 million in annual revenues. Terms of the transaction were not disclosed”. This should add almost 10% to ARI’s annual sales. Not earth shattering, but a move in the right direction. This stock is still illiquid, so price moves are fairly meaningless at this point. Now down 2% so far. BUY if you can find some shares. Huge valuation gap.

Linn.ob-(Buy price $.36, Valuation $.62 (was $.66 and before that-$.79)). Closed at $.28, unchanged last week. Still trading at only 45% of our current valuation. Down 22%. 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 $1.49, up $.02. Has $.44 in cash per share also. Share volume has remained healthy, at least by previous standards. Value Fund Advisors have apparently upped their stake in OPTIO to 2,918,026 this month from 2,510,559 previously, by buying a bunch of shares at $1.45-$1.46. Looks like their holdings are around 13% of the company now. Hopefully with this buying and the share buy-back plan, the selling overhang is being depleted. Maybe we will see north of $2.00 this year. 19% gain so far. HOLD.

AVSO.ob-(Buy price $1.19, Valuation $2.69 (was $3.36, $3.81)). Stock closed at $1.46, down $.04. Now up 23%. No significant news last week. HOLD.

CTIG.ob-(Buy price $.27 ask, Valuation $1.13 (Was $1.05, $.82)). Ask price was down $.005 at $.295. Closed at $.30. Cash is (was) $.24 per share. Five 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. Four 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 9% 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 $.18 at $2.28, up 17% to date. INYX issued an update on the buy-out last week. The most important statement was “the group now intends to present “an attractive cash buyout- offer” 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 7 up, 7 down and 1 even. DWCH is still our biggest dog followed by LINN.ob,PARL, INFT, MOBI and ARIS.ob. For the week, 2007 year-to-date, and since we started this Blog in January 2006 our model portfolio is -1.0%,-1.2% and +14.0% respectively.

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 $.57 to $10.74 last week. Shorts continue to control the vertical on this stock. Prospects are really great for this company. No news. Up a teeny 1% so far. BUY.

QADI-(Buy price $6.93, Valuation $13.69 (was $13.73 and $11.86). Closed at $8.12, up $.03. Trading at only 59% of valuation. Earnings due March 15th. No news. Has $1.03 in cash also. Up 17% so far. HOLD.

PDLI-(Buy price $19.31, Valuation > $30)–Closed at $21.75, up $.51. No news. Now up 13%. HOLD.

MIVA-(Buy price $3.80, Valuation $7.52 (was $7.38 and $9.10)). MIVA closed at $4.00, up $.08. Now UP 5%%. HOLD.

DWCH-(Buy price $3.66, Valuation $7.50 (was $7.63, $9.31)). Closed at $2.51, down $.18 for the week, now down 31%. Earnings due on January 30th. HOLD.

INFT-(Buy price $4.11, Valuation $6.95 (was $6.86)). Down $.12 to $3.64. Still has $2.52 per share in cash. Price objective $5.50. Earnings due on January 31st. Now down 11%. BUY.

MOBI-(Buy price $7.08, Valuation $12.69). Up $.04 to $6.58. No news. Earnings due on January 25th. Down 7%. BUY.

RITT-(Buy price $1.00, Valuation $2.69). Closed up $.02 at $1.27 last week. No news. Up 25%. HOLD.

PARL-(Buy price $6.65, Valuation $13.77). PARL closed at $5.87, down $.27 last week. The action is heating up. Letters and SEC filings are flying. Nussdorf’s move to oust current management and the Board is supposedly in the mail. We will vote with Nussdorf. There seems to be too many catalysts for this to stay down for long. Down 12%. This remains a BUY.

OB-abies

ARIS.ob-(Buy price $2.06, Valuation $5.28 (was $5.28, $5.21)). Closed at $2.00, unchanged last week. This stock is still illiquid, so price moves are fairly meaningless at this point. Now down 3% so far. BUY if you can find some shares. Huge valuation gap.

Linn.ob-(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. Down 22%. 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 $1.47, up $.05. Has $.44 in cash per share also. Share volume continued high last week, so maybe the company is using their $2 million to start buying back some share. 18% gain so far. HOLD.

AVSO.ob-(Buy price $1.19, Valuation $2.69 (was $3.36, $3.81)). Stock closed at $1.50, down $.15. Now up 26%. No significant news last week. HOLD.

CTIG.ob-(Buy price $.27 ask, Valuation $1.13 (Was $1.05, $.82)). Ask price stayed unchanged at $.30. Closed at $.30. Cash is (was) $.24 per share. Four 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. Three 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.

IYXI.ob-(Buy price $1.91, Valuation–over $3.00). Closed up $.14 at $2.42, up 27% to date. No news on the “take-over”, or the pay-off of their bank debt which was supposed to happen by the end of the year. HOLD.

Last week we went 7 up, 7 down and 1 even last week. MIVA finally moved back into the winner column last week.DWCH is still our biggest dog followed by LINN.ob,INFT, PARL, MOBI and ARIS.ob. For the week, 2007 year-to-date, and since we started this Blog in January 2006 our model portfolio is +.4%,-.2% and +15.2% respectively.

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 $.06 to $11.31 last week. announced a facility expansion last week, there will be some short-term negative financial impact due to duplicate facilities, but it shows confidence in the future. Needham conference last week had no impact as the shorts nickeled the price down to the mid-$10 range last week before the price came back strong on Friday. Up 6% so far. HOLD.

QADI-(Buy price $6.93, Valuation $13.69 (was $13.73 and $11.86). Closed at $8.09, up $.05. Trading at only 59% of valuation. No news. Has $1.03 in cash also. Up 17% so far. HOLD.

PDLI-(Buy price $19.31, Valuation > $30)–Closed at $21.24, up $1.02. DNA announced earnings last week and helped push PDLI higher as their royalty drugs sold by DNA had solid performances as well as the January 11th JP Morgan conference they spoke at. Now up 10%. HOLD.

MIVA-(Buy price $3.80, Valuation $7.52 (was $7.38 and $9.10)). MIVA closed at $3.92, up $.27. THe move to Google seems to be driving the stock. Now UP 3%%. HOLD.

DWCH-(Buy price $3.66, NEW Valuation $7.50 (was $7.63, $9.31)). Closed at $2.69, up $.09 for the week, now down 27%. Earnings due on January 30th. HOLD.

INFT-(Buy price $4.11, Valuation $6.95 (was $6.86)). Down $.13 to $3.76. Still has $2.52 per share in cash. Price objective $5.50. Earnings due on January 31st. Now down 9%. BUY.

MOBI-(Buy price $7.08, Valuation $12.69). Down $.19 to $6.54. No news. Earnings due on January 25th. Down 8%. BUY.

RITT-(Buy price $1.00, Valuation $2.69). Closed down $.02 at $1.25 last week. No news. Up 25%. HOLD.

PARL-(Buy price $6.65, Valuation $13.77). PARL closed at $6.13, down $.19 last week. Parl is trying to flush Mr. Nussbdorf out. On Friday they filed a letter with the SEC where they ask him to stop screwing around and make an offer for the company. Nussdorf meanwhile continues to wage his proxy war to toss out current management. Let the fun begin.There seems to be too many catalysts for this to stay down for long. Down 8%. 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 $.05 last week. This stock is still illiquid, so price moves are fairly meaningless at this point. Now down 3% so far. BUY if you can find some shares. Huge valuation gap.

Linn.ob-(Buy price $.36, Valuation $.62 (was $.66 and before that-$.79)). Closed at $.30, unchanged last week. 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 $1.42, down $.03. Has $.44 in cash per share also. Share volme jumped last week, so maybe the company is using their $2 million to start buying back some share. Didn’t help the stock price. 14% gain so far. HOLD.

AVSO.ob-(Buy price $1.19, Valuation $2.69 (was $3.36, $3.81)). Stock closed at $1.65, up $.05. Now up 39%. No news last week. HOLD.

CTIG.ob-(Buy price $.27 ask, Valuation $1.13 (Was $1.05, $.82)). Ask price stayed unchanged at $.30. Closed at $.30. Cash is (was) $.24 per share. Three 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. Two weeks 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.

IYXI.ob-(Buy price $1.91, Valuation–over $3.00). Closed up $.02 at $2.28, up 19% to date. No news on the “take-over”, or the pay-off of their bank debt which was supposed to happen by the end of the year. HOLD.