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.

Last week we went 7 up, 6 down and 2 even last week. While it is easy to talk about our winners, we hate to lose money on any stock, so we tend to focus on our “Dogs” rather than our winners like RITT +27%, or AVSO.ob +35%. DWCH is still our biggest dog followed by LINN.ob,INFT, MOBI, PARL, MIVA and ARIS.ob. Of these, only the first 2 have losses of more than 5%. For the week and 2007, year-to-date, our model portfolio is down .4%.

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 $.04 to $11.25 last week. Some potential good news about a new product application and they are presenting at the Needham conference on January 9th. Maybe we will get some positive news and blow away the shorts that have been messing around with our investment. Up 6% so far. HOLD.

QADI-(Buy price $6.93, Valuation $13.69 (was $13.73 and $11.86). Closed at $8.04, down $.35. Trading at only 59% of valuation. No reason for the drop, other than maybe some people taking their capital gains in 2007. Has $1.03 in cash also. Up 16% so far. HOLD.

PDLI-(Buy price $19.31, Valuation > $30)–Closed at $20.22, up $.08. Now up 5%. BUY.

MIVA-(Buy price $3.80, Valuation $7.52 (was $7.38 and $9.10)). MIVA closed at $3.65, up $.27. Announced a new deal with Google that drove the price up to $4.67 at one point last week, but couldn’t stay near that level. Now down “only” 4%. HOLD.

DWCH-(Buy price $3.66, NEW Valuation $7.50 (was $7.63, $9.31)). Closed at $2.60, unchanged for the week, now down 29%. HOLD.

INFT-(Buy price $4.11, Valuation $6.95 (was $6.86)). Up $.13 to $3.89. Still has $2.52 per share in cash. Price objective $5.50. Now down 5%. BUY.

MOBI-(Buy price $7.08, Valuation $12.69). Up $.08 to $6.73. No news. Down 5%. BUY.

RITT-(Buy price $1.00, Valuation $2.69). Closed down $.15 at $1.27 last week. Looks like some profit taking (again, maybe people who held the stock to avoid taxes in 2006 waited to sell until this week). Up 27%. HOLD.

PARL-(Buy price $6.65, Valuation $13.77). PARL closed at $6.33, up $.76 last week. Got up to $6.75 last week. There seems to be too many catalysts for this to stay down for long. Down 5%. This remains a BUY.

OB-abies

ARIS.ob-(Buy price $2.06, Valuation $5.28 (was $5.28, $5.21)). Closed at $2.05, up $.05 last week. This stock is still illiquid, so price moves are fairly meaningless at this point. Now down .5% 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, down $.03 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 $1.45, unchanged. Has $.44 in cash per share also. OPTIO announced a share buy-back plan last week of $2 million. We are generally not in favor of tech companies using cash to buy their shares, but at least it is not that much and will give some support to the stock price, hopefully. 16% gain so far. HOLD.

AVSO.ob-(Buy price $1.19, Valuation $2.69 (was $3.36, $3.81)). Stock closed at $1.60, up $.10. Now up 35%. Some product related news last week. HOLD.

CTIG.ob-(Buy price $.27 ask, Valuation $1.13 (Was $1.05, $.82)). Ask price dropped $.02 to $.30. Closed at $.30. Cash is (was) $.24 per share. Two 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. Last week 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 down $.07 at $2.26, up 18% 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.

Sometimes good things come in bunches. Even in a holiday shortened week we tacked on 6% to our 2006 gain. With “only” a 15.4% gain we still managed to beat NASDAQ and the S+P 500, but not the roaring DOW. Not a great year by our standards, and below the 25% we have averaged over the previous 15 years, but at least respectable.

Last week we went 11 up, 3 down and 1 even last week. DWCH is still our biggest dog followed by PARL, MIVA, INFT, LINN.ob MOBI and ARIS.ob. For the year we ended at 12 stocks up and 7 down. We sold 4 stocks (NTCT, ONXS, DTLK, CAW) for an average gain of 28%.

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 $.10 to $11.29 last week. No news. Shorts are still mucking around with SPNC. Up 6% so far. HOLD.

QADI-(Buy price $6.93, Valuation $13.69 (was $13.73 and $11.86). Closed at $8.39, up $.33. Trading at only 61% of valuation. Has $1.03 in cash also. Up 21% so far. HOLD.

PDLI-(Buy price $19.31, Valuation > $30)–Closed at $20.14, down $.19. No news. Now up 4%. BUY.

MIVA-(Buy price $3.80, Valuation $7.52 (was $7.38 and $9.10)). MIVA closed at $3.38, down $.09. No news. Now down 11%. HOLD.

DWCH-(Buy price $3.66, NEW Valuation $7.50 (was $7.63, $9.31)). Closed at $2.60, down $.02, now down 29%. HOLD.

INFT-(Buy price $4.11, Valuation $6.95 (was $6.86)). Up $.04 to $3.76. Still has $2.52 per share in cash. Price objective $5.50. Now down 9%. BUY.

MOBI-(Buy price $7.08, Valuation $12.69). Up $.12 to $6.65. No news. Down 6%. BUY.

RITT-(Buy price $1.00, Valuation $2.69). Closed up $.29 at $1.42 last week. On Friday it even got up to $1.57 but couldn’t hold there. Looks like some of the value here is starting to be recognized. Let’s hope next week brings more of the same. Up 42%. HOLD.

PARL-(Buy price $6.65, Valuation $13.77). PARL closed at $5.57, up $.22 last week. January could bring some real action as Mr. Nussdorf trys to replace the current management. There seems to be too many catalysts for this to stay down for long. Down 16%. This remains a BUY.

OB-abies

ARIS.ob-(Buy price $2.06, Valuation $5.28 (was $5.28, $5.21)). Closed at $2.00, up $.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 $.33, up $.03 last week. Still trading at only 53% of our current valuation. Down 8% YTD. HOLD until we get some revenue growth and stop losing money (same story as last quarter).

OPTO.ob-(Buy price $1.25, NEW Valuation $2.89 (was $2.54 and 2.88)). Closed at $1.45, up $.02. Has $.44 in cash per share also. So now we have a 16% gain. HOLD.

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

CTIG.ob-(Buy price $.27 ask, Valuation $1.13 (Was $1.05, $.82)). Ask price jumped $.04 to $.32. Closed at $.30. Cash is (was) $.24 per share. Last Friday CTI announced the purchase of Ryder Systems LTD. an international provider of electronic and on-line billing solutions and developer of VoIP business applications. On Friday 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. Price action last week is either some rebound from tax selling, or maybe someone knows what they bought–will have to wait to see. Now up 19% 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 $.15 at $2.33, up 22% 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. Price action on Friday looked good, but no info to go on yet. HOLD.

That’s all we can say right now. We went 8 up, 5 down and 2 even last week. Our model portfolio year-to-date gain, moved down 1% to 9.4% over the past week. DWCH is still our biggest dog followed by PARL, LINN.ob, MIVA, INFT, MOBI and ARIS.ob. Since the start of the year we are 12 up and 7 down.

CTI news last week.

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 $.20 to $11.19 last week. No news. Shorts are still at it. They drove the price down into the mid-$10 range again, but couldn’t keep it there. Let’s hope for a good quarter and some new all-time highs. Up 5% so far. HOLD.

QADI-(Buy price $6.93, Valuation $13.69 (was $13.73 and $11.86). Closed at $8.06, up $.01. Trading at only 59% of valuation. Has $1.03 in cash also. Up 16% so far. HOLD.

PDLI-(Buy price $19.31, Valuation > $30)–Closed at $20.33, down $1.20. No significant news, so maybe it is tax selling and funds cleaning up their year-end portfolios that is hammering the stock. Now up 5%. HOLD.

MIVA-(Buy price $3.80, Valuation $7.52 (was $7.38 and $9.10)). MIVA closed at $3.47, up $.17. No news. Now down only 9% so far. HOLD.

DWCH-(Buy price $3.66, NEW Valuation $7.50 (was $7.63, $9.31)). Closed at $2.62, up $.07, now down 28%. HOLD.

INFT-(Buy price $4.11, Valuation $6.95 (was $6.86)). Up $.02 to $3.72. Still has $2.52 per share in cash. Price objective $5.50. Now down 10%. BUY.

MOBI-(Buy price $7.08, Valuation $12.69). Down another $.38 to $6.53. No news. After a strong start–now a loser, down 8%. BUY.

RITT-(Buy price $1.00, Valuation $2.69). Closed down $.07 at $1.13 last week. Up 13%. No news. HOLD.

PARL-(Buy price $6.65, Valuation $13.77). PARL closed at $5.35, up $.08 last week. SEC filing on Friday by Mr. Nussdorf trying to throw out the current Board of Directors. We are voting with him. There seems to be too many catalysts for this to stay down for long. Down 20%. This remains a BUY.

OB-abies

ARIS.ob-(Buy price $2.06, Valuation $5.28 (was $5.28, $5.21)). Closed at $1.95, up $.05 last week. This stock is still illiquid so price moves are fairly meaningless at this point. Now down 5% 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, even last week. Still trading at only 48% of our current valuation. Down 17% YTD. HOLD until we get some revenue growth and stop losing money (same story as last quarter).

OPTO.ob-(Buy price $1.25, NEW Valuation $2.89 (was $2.54 and 2.88)). Closed at $1.43, down $.01. Has $.44 in cash per share also. So now we have a 14% gain. HOLD.

AVSO.ob-(Buy price $1.19, Valuation $2.69 (was $3.36, $3.81)). Stock closed at $1.50, down $.08. Now up 26%. No news. HOLD.

CTIG.ob-(Buy price $.27 ask, Valuation $1.13 (Was $1.05, $.82)). Ask price unchanged at $.28. Closed at $.26. Cash is $.24 per share. On Friday CTI announced the purchase of Ryder Systems LTD. an international provider of electronic and on-line billing solutions and developer of VoIP business applications. No financial details provided at this point, but the cost of the purchase is $11 million. Now up 4% so far (based on ask price). BUY if you can find some shares.

IYXI.ob-(Buy price $1.91, Valuation–over $3.00). Closed up $.035 at $2.185, up 14% to date. Another “collaberation” deal announced but no news on the “take-over”. Just have to wait. HOLD.

That’s all we can say right now. We went 5 up, 9 down and 1 even last week. Our model portfolio year-to-date gain, moved down .9% to 10.4% over the past week. DWCH is now our biggest dog followed by PARL, LINN.ob, MIVA, INFT, ARIS.ob and MOBI. Since the start of the year we are 12 up and 7 down.

OPTIO earnings last week.

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). Dropped $.51 to $10.99 last week. No news. Shorts are still at it. I saw SPNC trade 100 shares at $.03 below the bid (100 shares also) several times last week as they continued to play their games. Up 3% so far. BUY

QADI-(Buy price $6.93, Valuation $13.69 (was $13.73 and $11.86). Closed at $8.05, up $.12. Trading at only 59% of valuation. Has $1.03 in cash also. Up 16% so far. HOLD.

PDLI-(Buy price $19.31, Valuation > $30)–Closed at $21.53, down $.84. Only good pipeline and Avastin news–still went down. Now up 12%. HOLD.

MIVA-(Buy price $3.80, Valuation $7.52 (was $7.38 and $9.10)). MIVA closed at $3.30, up $.05. No news. Down 13% so far. HOLD.

DWCH-(Buy price $3.66, NEW Valuation $7.50 (was $7.63, $9.31)). Closed at $2.55, down $.19, now down 30%. HOLD.

INFT-(Buy price $4.11, Valuation $6.95 (was $6.86)). Down $.07 to $3.70. Still has $2.52 per share in cash. Price objective $5.50. Now down 10%. BUY.

MOBI-(Buy price $7.08, Valuation $12.69). Down $.17 to $6.91. No news. After a strong start–now a loser, down 2%. BUY.

RITT-(Buy price $1.00, Valuation $2.69). Closed down $.03 at $1.20 last week. Up 20%. No news. HOLD.

PARL-(Buy price $6.65, Valuation $13.77). PARL closed at $5.27, down $.18 last week. Disappointment over the Perry Ellis sale price and no news on any take-over has just left this drifting for now. There seems to be too many catalysts for this to stay down for long. Down 21%. This remains a BUY.

OB-abies

ARIS.ob-(Buy price $2.06, Valuation $5.28 (was $5.28, $5.21)). Closed at $1.90, down $.15 last week. This stock is still illiquid so price moves are fairly meaningless at this point. Now down 8% 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, up $.04 last week. Still trading at only 48% of our current valuation. Down 17% YTD. HOLD until we get some revenue growth and stop losing money (same story as last quarter).

OPTO.ob-(Buy price $1.25, NEW Valuation $2.89 (was $2.54 and 2.88)). Closed at $1.44, up $.11. Volume on earnings day was very nice. Has $.44 in cash per share also. So now we have a 15% gain. HOLD.

AVSO.ob-(Buy price $1.19, Valuation $2.69 (was $3.36, $3.81)). Stock closed at $1.58, down $.11. Now up 33%. No news. HOLD.

CTIG.ob-(Buy price $.27 ask, Valuation $1.13 (Was $1.05, $.82)). Ask price moved up $.02 to $.28. Closed at $.25. Cash is $.24 per share. Now up 4% so far (based on ask price). BUY if you can find some shares.

IYXI.ob-(Buy price $1.91, Valuation–over $3.00). Closed unchanged at $2.15, up 13% to date. No news on the “take-over”. Just have to wait. HOLD.

OPTO.ob announced Q3 (Oct. 31) earnings this morning. Not bad at all. Revenues up 7% YOY, and they made a profit! They earned $1.088 million or $.04 per share, but that included a $900,000 profit on the Note they collected after the end of the quarter. Still, they were profitable even after excluding this one-time gain.

Sales growing, profitable, $10 million in cash (after Note collection), no debt and a new valuation of $2.89 a share, up from $2.66. We like it.

Hopefully some other investors will notice too. We are not even at 50% of fair value.

BUY if you don’t have some already.

We went 6 up, 7 down and 2 even last week. Our model portfolio year-to-date gain, moved up 1.3% to 11.3% over the past 2 weeks. LINN.ob is now our biggest dog followed by, DWCH, PARL, MIVA, INFT and CTIG.ob and ARIS.ob. Since the start of the year we are 11 up and 7 down. Mini-caps continue to lag way behind the market.

PARL news last week.

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

Price changes in this update are over the last 2 weeks.

SPNC-(Buy price $10.65, Valuation $18-$20). Rebounded $.55 to $11.50 since our last update 2 weeks ago. No news, just oversold. Up 8% so far. HOLD

QADI-(Buy price $6.93, Valuation $13.69 (was $13.73 and $11.86). Closed at $7.93, down $.15. Trading at only 58% of valuation. Has $1.03 in cash also. Up 14% so far. HOLD.

PDLI-(Buy price $19.31, Valuation > $30)–Closed at $22.37, down $.86. Pretty quiet-no news. Now up 16%. HOLD.

MIVA-(Buy price $3.80, Valuation $7.52 (was $7.38 and $9.10)). MIVA closed at $3.25, down $.15. No news. Down 15% so far. HOLD.

DWCH-(Buy price $3.66, NEW Valuation $7.50 (was $7.63, $9.31)). Closed at $2.74, up $.79,now down “only” 25%. HOLD.

INFT-(Buy price $4.11, Valuation $6.95 (was $6.86)). Up $.08 to $3.77. Still has $2.52 per share in cash. Price objective $5.50. Now down 8%. BUY.

MOBI-(Buy price $7.08, Valuation $12.69). Down $.09 to $7.08. No news. Back to dead even on this one. BUY.

RITT-(Buy price $1.00, Valuation $2.69). Closed up $.21 at $1.23 over the last 2 weeks. Up 23%. No news. HOLD.

PARL-(Buy price $6.65, Valuation $13.77). PARL announced that they were selling the Perry Ellis brand back to–Perry Ellis for $63 million in cash. The good news is that this price is about $3 per share in cash, the bad news is that is was less than 50% of what they had it sold for a month or 2 ago until Perris Ellis nixxed that deal. Stock got hammered down to $5.45 late last week so we are down 18% right out of the box. The PE brand contributed 43% of PARL sales in the year ended March 31, 2006, but only 31% of Q1 (June 2006) sales. PE brand sales were down significantly in Q1 and PARL’s other brands grew fast enough to offset this sales decline and still grow 20% overall. We re-ran our valuation with the $63 million in sale proceeds and knocked $50 million off our FY2007 sales estimates and came up with an estimated valuation of $13.35 a share. With possible offers to be taken private in the background and a good valuation regardless of such a transaction, this remains a BUY.

OB-abies

ARIS.ob-(Buy price $2.06, NEW Valuation $5.28 (was $5.28, $5.21)). Closed at $2.05, down $.07 last week. This stock is still illiquid so price moves are fairly meaningless at this point. Now down 1% 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 $.26, unchanged over the last 2 weeks. Still trading at only 42% of our current valuation. Down 28% YTD. HOLD until we get some revenue growth and stop losing money (same story as last quarter).

OPTO.ob-(Buy price $1.25, Valuation $2.54 (was 2.88)). Closed at $1.33, down $.15. Couldn’t hold the $1.50 level, so we drift back down. So now we have only a 6% gain. HOLD.

AVSO.ob-(Buy price $1.19, Valuation $2.69 (was $3.36, $3.81)). Stock closed at $1.70, up $.17. Now up 43%. HOLD.

CTIG.ob-(Buy price $.27 ask, NEW Valuation $1.13 (Was $1.05, $.82)). Ask price stayed the same at $.26. Closed at $.26. Cash is $.24 per share. Now down 4% so far (based on asked price). BUY if you can find some shares.

IYXI.ob-(Buy price $1.91, Valuation–over $3.00). Closed down $.04 at $2.15, up 13% to date. Not much news on the “take-over” over the last 2 weeks, other than it is still in the works. Announced a new contract signing last week also. HOLD.

Will be traveling out of the country.

See you all December 9th.

Parlux is in the frangrance business as the name says. It has brand rights to names like Perry Ellis and Paris Hilton among others. I owned this stock twice before several years ago very profitably. The current situation is involved and interesting. Please read all the recent press releases.

Our valuation is $13.77 a share. So the stock is trading at less than 50% of our valuation which makes it a buy in its own right. On top of that they recently had an offer to buy their Perry Ellis brands for $120 million (equal to today’s market cap alone). Perry Ellis nixxed the deal though. So now Glenn Nussdorf who owns 37% of E-Com Ventures (which is one of Parlux’s major customers) has recently bought 12.2% of PARL and is making nioses about buying PARL entirely. Lots if inter-relationships here which mkes it complicated and a bit risky. There are rumors of an offer any day, any minute–which means nothing will probably happen for a while, or at all. The stock was up as high as $19 in the last 52 weeks. We owned is previously at the $1.50 level and we hate to buy stocks back at higher levels but PARL’s business has exploded since we owned it beofre and it has a number of catalysts that could drive this much higher. The “take-over” rumors talk about $13.50 a share, which are amazing close to our valuation. BUY.