What a crummy market. It has gotten very painful, but despite the carnage out there we did not really have too bad a week. MIVA is our biggest dog, but we are hopeful that it will rebound–it will just take time. A number of companies we are watching warned on earnings over the last several weeks, got hammered and could be buys–if this market ever looks like it will turn around. Last week we had 2 up, 7 down, 1 even. Since the start of the year we are still 10 up and 3 down and 1 even. No buys or sells this past week.

CAW-(Buy price $9.45, Valuation $18.40). Closed down $.43 for the week at $9.98. Yield about 3%. Up 6% so far. HOLD.

QADI-(Buy price $6.93, Valuaton $11.86). Closed at $7.70, down $.15. Up 11% so far. HOLD.

PDLI-(Buy price $19.31, Valuation > $30)–Closed at $17.26, down $1.44 from last week. Now down 11%. Still a BUY.

MIVA-(Buy price $3.80, Valuation $9.10). MIVA closed at $2.80, down $.75 from last week. It was a bad time to issue a warning. Now down 26% on this one. HOLD.

Datawatch-(Buy price $3.66, Valuation $9.31). Closed at $3.60, up $.12 from last week, still a loser–down 2%. The discount to the valuation is just too big. Still a BUY.

Inforte-(Buy price $4.11, Valuation $7.32). Up $.14 to $4.79 last week. Still up 17%. HOLD for $6.00.

OB-abies

Linn.ob-(Buy price $.36, Valuation $.79). Closed at $.36, even on the week and YTD. Still a BUY.

OPTO.ob-(Buy price $1.25, Valuation $2.88). Closed at $1.26, down $.04 from last week. Weird trading on Friday again. Jumped to $1.51 on about 20,000 shares, than dropped to $1.26 when someone put 10,000 shares for sale at $1.31–and only got 500 done. Gut says to snap these up if they are still available on Monday–but this market is too scary to buy anything right now. In the plus column up 1% to date. BUY.

AVSO.ob-(Buy price $1.19, Valuation $3.81). Stock fell another $.10 from last week to $1.95. Now only up 64%. BUY

CTIG.ob-(Buy price $.27 ask, Valuation $.82). Ask price jumped to $.45 last week. Closed at $.35. Cash is $.28 per share. Up 67% (based on asked price). HOLD.

IYXI.ob-(Buy price $1.91, Valuation–over $3.00). Closed down $.02 from last week at $2.65, up 39% so far. Jumped $.20 one day last week–then the market took over. Maybe some good news on quarterly results coming? HOLD

Last week we had 4 up, 6 down, 1 even. Since the start of the year we are still 10 up and 3 down and 1 even. No buys or sells this past week. CAW made a nice upside move, but MIVA went the other way.

CAW-(Buy price $9.45, Valuation $18.40). Closed up $1.19 for the week at $10.41. Apparently releasing their earnings twice worked a bit, they were good. Yield about 2.5%. Up 10% so far. HOLD.

QADI-(Buy price $6.93, Valuaton $11.86). Closed at $7.85, up $.12. Got up over $8 several times last week–but then Friday happened. No news. Up 13% so far. HOLD.

PDLI-(Buy price $19.31, Valuation > $30)–Closed at $18.70, up $.29 from last week. Now down 3%. Still a BUY.

MIVA-(Buy price $3.80, Valuation $9.10). MIVA closed at $3.55, down $.50 from last week. They warned on this quarter’s earning. They will miss sales by 2-3 million and bottom line too. They didn’t say how much. Will update valuation when all the numbers comes out. The valuation will go down, but not enough to cause us to sell yet. Now down 7% on this one. WAIT.

Datawatch-(Buy price $3.66, Valuation $9.31). Closed at $3.48, down $.10 from last week, still a loser–down 5%. The discount to the valuation is just too big. Still a BUY.

Inforte-(Buy price $4.11, Valuation $7.32). Down $.11 to $4.65 last week. Still up 13%. Hold for $6.00.

OB-abies

Linn.ob-(Buy price $.36, Valuation $.79). Closed at $.36, down $.02 from last week. Now even on this one. Still a BUY.

OPTO.ob-(Buy price $1.25, Valuation $2.88). Closed at $1.30, down $.10 from last week. They announced that the CEO sold 200,000 shares last week. Never a good thing, but it is like 3% of what he owns. Stock just can’t get out of its own way. In the plus column up 4%. to date. HOLD.

AVSO.ob-(Buy price $1.19, Valuation $3.81). Stock fell $.10 from last week to $2.05. Now only up 72%. BUY

CTIG.ob-(Buy price $.27 ask, Valuation $.82). Ask price stayed the same at $.38 last week. Closed at $.35. Cash is $.28 per share. Up 41% (based on asked price). HOLD.

IYXI.ob-(Buy price $1.91, Valuation–over $3.00). Closed up $.07 from last week at $2.67, up 40%. HOLD

Last week we had 5 up, 5 down, 1 even. Since the start of the year we are still 11 up and 3 down. No buys or sells this past week.

Just as a post-mortem, ONXS received a new all cash take-over offer from CDC last week–$5.00, 97% of what our valuation came up with.

Looking hard at Elizabeth Arden (RDEN). Almost bought last week when it fell under $17. Valuation is $33 a share, but it has a lot of debt, which makes us pause. No opinion yet.

CAW-(Buy price $9.45, Valuation $18.40). Closed down $.25 for the week at $9.22. CAW was dropped from the Russell index on Friday, but the fundamentals are good. They released earnings last week also, sales up 3%. Earnings were down 3%, but they would have been up 42% (!) if they hadn’t had to change the way they account for advertising expenses. Earnings comparisons for the next 2 quarters should be very good, as they were deferring some of these advetising expenses into future quarters in the past, rather than expenseing them all in Q2. Yield about 3%. Down 2% so far. BUY.

QADI-(Buy price $6.93, Valuaton $11.86). Closed at $7.73, up $.68. Got up to $7.99 on Friday but couldn’t hold there. No news. Up 12% so far. HOLD.

PDLI-(Buy price $19.31, Valuation > $30)–Closed at $18.41, up $.94 from last week. Now down 5%. Still a BUY.

MIVA-(Buy price $3.80, Valuation $9.10). MIVA closed at $4.05, up $.08 from last week. Up 7% on this one. BUY.

Datawatch-(Buy price $3.66, Valuation $9.31). Closed at $3.58, down $.05 from last week, but still a loser–down 2%. The discount to the valuation is just too big. Still a BUY.

Inforte-(Buy price $4.11, Valuation $7.32). Down $.14 to $4.76 last week. Still up 16%. Hold for $6.00.

OB-abies

Linn.ob-(Buy price $.36, Valuation $.79). Closed at $.38, up $.01 from last week. Up 6% Still a BUY.

OPTO.ob-(Buy price $1.25, Valuation $2.88). Closed at $1.40, up $.19 from last week Back in the plus column up 12%. A 400,000 share block traded on Friday, so hopefully the recent selling pressure will let up and this will crack over $1.50 which seems hard for this stock to do. HOLD.

AVSO.ob-(Buy price $1.19, Valuation $3.81). Stock fell $.05 from last week to $2.15. Now only up 81%. BUY

CTIG.ob-(Buy price $.27 ask, Valuation $.82). Ask price stayed the same at $.38 last week. Closed at $.35. Cash is $.28 per share. Up 41% (based on asked price). HOLD.

IYXI.ob-(Buy price $1.91, Valuation–over $3.00). Closed down $.05 from last week at $2.60, up 36%. HOLD

Last week we had 6 up, 5 down. Since the start of the year we are 11 up and 3 down. No buys or sells this past week.

CAW-(Buy price $9.45, Valuation $18.40). Closed down $.02 for the week at $9.47. We forgot to mention previously that you also get a $.28 dividend on this one. Yield about 3%. Call it even so far. BUY.

QADI-(Buy price $6.93, Valuaton $11.86). Closed at $7.05, down $.16. Up 2%. Still a BUY.

PDLI-(Buy price $19.31, Valuation > $30)–Closed at $17.47, down $.40 from last week. DNA got approved for additional indications for Avastin (PDLI gets royalties on Avastin) and the stock goes down. Who can figure. Now down 10%. Still a BUY.

MIVA-(Buy price $3.80, Valuation $9.10). MIVA closed at $3.97, up $.01 from last week. Up 4% on this one. BUY.

Datawatch-(Buy price $3.66, Valuation $9.31). Closed at $3.63, up $.13 from last week, but still a loser–down 1%. The discount to the valuation is just too big. Still a BUY.

Inforte-(Buy price $4.11, Valuation $7.32). Up $.22 to $4.90 last week. Still up 19%. Hold for $6.00.

OB-abies

Linn.ob-(Buy price $.36, Valuation $.79). Closed at $.37, up $.05 from last week. Back up in the plus column–barely. + 3% Still a BUY.

OPTO.ob-(Buy price $1.25, Valuation $2.88). Closed at $1.21, down $.09 from last week, now down 3%. I love this stock, but it does nothing. BUY anyway.

AVSO.ob-(Buy price $1.19, Valuation $3.81). Stock rose $.16 from last week to $2.19. Now only up 84%. BUY

CTIG.ob-(Buy price $.27 ask, Valuation $.82). Ask price went up to $.38 last week. Closed at $.35. Cash is $.28 per share. Up 41% (based on asked price). Still a BUY.

IYXI.ob-(Buy price $1.91, Valuation–over $3.00). went up to $2.75 but couldn’t hold. Closed down $.02 from last week at $2.65, up 39%. HOLD

Another, another, another– bad week in the markets in general. Last week we had 6 up, 4 down and 1 even. Since the start of the year we are 11 up and 3 down. Two new BUYS this past week, CCA Industries (CAW) and QAD Systems (QADI).

CAW-(Buy price $9.45, Valuation $18.40). Closed up $.04 for the week at $9.49. At least it did not go down. Call it even so far. BUY.

QADI-(Buy price $6.93, Valuaton $11.86). Closed at $7.20, up 4% in a crappy market. Well some things do start out right sometimes. Still a BUY.

PDLI-(Buy price $19.31, Valuation > $30)–Closed at $17.87, down $1.09 from last week. Apparently it was an even better buy under $18! Now down 7%. Still a BUY here under $19.

MIVA-(Buy price $3.80, Valuation $9.10). MIVA closed at $3.96, up $.11 from last week. Up 4% on this one. BUY.

Datawatch-(Buy price $3.66, Valuation $9.31). Closed at $3.50, up $.09 from last week, but still a loser–down 4%. The discount to the valuation is just too big. Still a BUY.

Inforte-(Buy price $4.11, Valuation $7.32). Fell $.09 to $4.68 last week. No news, just a crappy market. Still up 14%. Hold for $6.00.

OB-abies

Linn.ob-(Buy price $.36, Valuation $.79). Closed at $.32, unchanged from last week but still down 11%. No news. Just have to wait on earnings growth or a deal on this one. Still a BUY.

OPTO.ob-(Buy price $1.25, Valuation $2.88). Closed at $1.30, down $.05 from last week, now up only 4%. Announced earning last week. Had a small, expected loss. Their sales look a bit seasonal and their new valuation dropped to $2.88 from $3.09. At less than 50% of value, I bought more last week at $1.35– BUY.

AVSO.ob-(Buy price $1.19, Valuation $3.81). Stock rose $.03 from last week to $2.03. They sold some equity at $2.00 to refinance the bridge loan they took out to finance the recent acquisition. Fact that outside investors paid $2.00 a share is good news. I am sure they are looking for at least 25% compound annual returns. So are we. Now only up 71%. BUY

CTIG.ob-(Buy price $.27 ask, Valuation $.82). Ask price dropped to $.35 last week. Closed at $.35. Cash is $.28 per share. Up 30% (based on asked price). Still a BUY.

IYXI.ob-(Buy price $1.91, Valuation–over $3.00). Strong price rise continued last week. Closed up $.05 from last week at $2.67, up 40%. HOLD

CCA is in the personal care products business. Trading at $9.45 today. Our valuation is $18.40, so it is trading for just over 50% of value. $2.33 a share in cash to boot. BUY.

I own this (in the $8’s as well as QADI ($6.96)

New one. This one has somehow survived the carnage out ther over the past couple of weeks. This sofware company is profitable, pay a small dividend and has a valuation of $11.86 a share compared to its current trading price of $6.93. Trading at 58% of value with $1.53 in cash. 52 week low was $6.77 and high was $8.85. BUY

Another bad week in the markets in general (and for us). 6 down, 2 up and 1 even, last week for us. Since the start of the year we are 9 up and 3 down. Biggest gainer is AVSO.ob, up 68% and biggest loser is LINN.ob, down 11%.

ONXS accepted a takover last week at $4.80 a share. Interestingly, our last valuation causing us to sell ONXS was $5.17 down from over $7 initially. So we were able to get it within about 7% of the final takeover value.

With the carnage out there you would think that there would be some good buys out there. I am still not seeing much that I do not already own. There is one sofware company and one personal care company (already own) that I am looking hard at that may turn into buys next week.

PDLI-(Buy price $19.31, Valuation > $30)–Closed at $18.96, down $1.24 from last week. Missed the bottom on this. Now down 2%. Definitely a BUY here under $19.

MIVA-(Buy price $3.80, Valuation $9.10). MIVA fell to $3.85, down $.18 from last week. Up a skinny 1% on this one. BUY.

Datawatch-(Buy price $3.66, Valuation $9.31). Closed at $3.41, down $.10 from last week, but still a loser–down 7%. The discount to the valuation is just too big. Still a BUY.

Inforte-(Buy price $4.11, Valuation $7.32). Fell $.20 to $4.77 last week. No news, just a crappy market. Still up 16%. Hold for $6.00.

OB-abies

Linn.ob-(Buy price $.36, Valuation $.79). Closed at $.32, up $.01 from last week but still down 11%. No news. Just have to wait on earnings growth on this one. Still a BUY.

OPTO.ob-(Buy price $1.25, Valuation $3.09). Closed at $1.35, down $.15 from last week, now up only 8%. After having been immune from the market swoon over the past weeks, OPTO finally participated in the June swoon, but at this price– BUY.

AVSO.ob-(Buy price $1.19, Valuation $3.81). Stock fell $.01 from last week to $2.00. Now only up 68%. BUY

CTIG.ob-(Buy price $.27 ask, Valuation $.82). Ask price is still $.39, same as last week. Closed at $.33. Cash is $.28 per share. Up 44% (based on asked price). Still a BUY.

IYXI.ob-(Buy price $1.91, Valuation–over $3.00). Still risky, but seemed strong last week, maybe some good news coming? Closed up $.12 from last week at $2.62, up 42%. HOLD

On vacation last week.

Market is still choppy, but think we have hit bottom for a while. Not much exciting with our stocks over the last 2 weeks–but no big losses either!

PDLI-(forgot to put in the closing price in the last update–it was $19.31)–Closed at $20.20, up 4.6%. Hopefully we caught the bottom on this one. Again, sky is the limit, but if it gets back to the $30 range, take profits. Still OK to buy at this level if you didn’t pick some up under $20.

MIVA-(Buy price $3.80, Valuation $9.10). MIVA moved up a bit to $4.03, over the last 2 weeks. Announced some cost cuts (and some charges for next quarter). Maybe they are sprucing up for a sale? Anyway, sale or getting to profits is a good thing, up 6% on this one. BUY.

Datawatch-(Buy price $3.66, Valuation $9.31). Closed at $3.51, up $.03 from 2 weeks ago, but still a loser–down 4%. The discount to the valuation is just too big. BUY.

Inforte-(Buy price $4.11, Valuation $7.32). Flat price of $4.97 over the last 2 weeks, although it did spike up to $5.10 for a while. Boring, but up 21%. Hold for $6.00.

OB-abies

Linn.ob-(Buy price $.36, Valuation $.79). Closed at $.31, up slightly from 2 weeks ago, but still down 14%. No news. Just have to wait on earnings growth on this one. Still a BUY.

OPTO.ob-(Buy price $1.25, Valuation $3.09). Closed at $1.50, up $.09 from 2 weeks ago and up 20% from the start. If it would only break through $1.50! No news, just holding strong. HOLD.

AVSO.ob-(Buy price $1.19, Valuation $3.81). They closed an acquisiton last week that is supposed to add $11 million in revenue and be accretive to earnings. Not enough details on this yet to do a new valuation, but I suspect that with a roughly 25% increase in sales, it will go up. Stock fell another $.14 from 2 weeks ago to $2.01. Now only up 69%. Think I need to buy more of this, if there is any supply out there. BUY

CTIG.ob-(Buy price $.27 ask, Valuation $.82). Ask price is up to $.39 from $.36, 2 weeks ago. Closed at $.35. Cash is $.28 per share. Up 44% (based on asked price). Still a BUY.

IYXI.ob-(Buy price $1.91, Valuation–over $3.00). Still risky, but could be a home run stock if they do what they say they will. Closed up $.15 from 2 weeks ago at $2.50, up 31%. HOLD

I originally bought PDLI at around the $7 level in 2003. I sold 3/4 of my position at around $21. I am holding the remaining and am planning to buy more at this sub-$20 level. This bio-tech company has everything going for it. A lucrative royalty stream from some of the biggest names of bio-tech (Genentech-Avastin, Xolair, Raptiva/MedImmune-Synagis, etc.), product sales from an acquisition made last year and some potential block-busters in the R+D pipeline. Balance sheet is not bad either with $346 million in cash. This stock was recently $32+, then they missed analysts estimates by $10 million last quarter, the market tanked, and bio-tech fell out of favor a bit. It is losing money on a GAAP basis (although they were profitable on a non-GAAP basis last quarter–slightly). This is not a valuation play, but a growth play. Biggest mistake I made on this one was not buying more when it was down to $15 after I sold some at $21. This could be a $50-$100 stock, 3 years from now. Trading at 5.5 times current year projected sales–so not for the faint of heart. But them DNA (Genentech) trades at 11 times. Expect volitility! BUY.