cheap stocks

Cheap Stock Weekly Update June 9th 2014

After last week’s dismal performance we had our best week of the year this week-up 5.2% We are now up 7.2% for the year. The DOW was up 1.2% and NASDAQ was up 1.9%. For the year, the DOW is up 2.1% and NASDAQ is up 3.5%

No earnings last week.

Some of our stocks are just stupid cheap—compared to their net cash on hand per share divided by their stock price.

Check this list:

UNTD 47%
CCUR 28%
SIGM 77%
MRVC 16%
SYNC 53%

 PRSS, MRVC, DAEG, EXTR and UNTD can still be bought.

Last week we went 8 stocks up and 6 down. Since inception we are now 66 stocks up and 19 down for a 77.6% winning percentage (80% is our target win %). Of our closed-out positions 59 have been winners and 13 have been losers for an 82% win percentage and a 34% average net gain per position.

Since our beginning, we have closed out the following positions: Continue reading →

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Cheap Stock Weekly Update June 2nd 2014

We went in the opposite direction from the markets last week as micro caps were ignored and continued to drift down. We were down 1% last week driven by a 12% loss in BLIN.  We are now up 2% for the year. The DOW was up 1.1% and NASDAQ was up 1.4%. For the year, the DOW is up .9% and NASDAQ is up 1.6%

No earnings last week.

Some of our stocks are just stupid cheap—compared to their net cash on hand per share divided by their stock price.

Check this list:

UNTD 44%
CCUR 28%
SIGM 76%
MRVC 18%
SYNC 51%

 

PRSS, MRVC, DAEG, EXTR and UNTD can still be bought.

Last week we went 3 stocks up, 9 down and 2 even. Since inception we are now 67 stocks up and 18 down for a 78.8% winning percentage (80% is our target win %).  Of our closed-out positions 59 have been winners and 13 have been losers for an 82% win percentage and a 34% average net gain per position.

Since our beginning, we have closed out the following positions: Continue reading →

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Cheap Stock Weekly Update May 26th 2014

We were down .5% last week driven by a 7.5% loss in ARIS in which we are over-weighted. We are now up 3% for the year. The DOW was up .3% and NASDAQ was up 1.0%. For the year, the DOW is down .2% and NASDAQ is down 1.1%

No earnings last week.

Some of our stocks are just stupid cheap—compared to their net cash on hand per share divided by their stock price.

Check this list:

UNTD 45%
CCUR 28%
SIGM 76%
MRVC 17%
SYNC 51%

 PRSS, MRVC, DAEG, EXTR and UNTD can still be bought.

Last week we went 6 stocks up and 8 down. Since inception we are now 68 stocks up and 17 down for a 80.0% winning percentage (80% is our target win %). Of our closed-out positions, 59 have been winners and 13 have been losers for an 82% win percentage and a 34% average net gain per position.

Since our beginning, we have closed out the following positions:  Continue reading →

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CSI Update: BUY CaféPress Inc. (NASDAQ–PRSS)

Valuation-$11.27

Price May 19, 2014, 2014-$5.40

PRSS is a little different than our usual picks. Although it is an online business, it basically sells T-Shirts and things. Nevertheless, we have been watching it for a while and think this is a good entry point. I own PRSS.

Latest earnings were for the quarter ended 3/31/2014. Nothing to write home about. Revenues were down from $52.5 million to $48.2 million and they lost $5.2 million versus a $4 million loss last year. Like most “retailers” their business is somewhat seasonal. They are projecting around $250 million of sales for 2014 and breakeven to a loss of $.12 a share on a Non-GAAP basis. Our valuation based on the latest quarter is $11.27 a share. If they hit their guidance, it is over $16 a share.

Back in February, PRSS announced that they had hired Raymond James & Associates to help them pursue “strategic alternatives”. We think PRSS could be sold for a premium to the current stock price, if a buyer can be found.

Trading at only 48% of our valuation we think this is a BUY..

There are about 17 million shares outstanding and it trades about 45,000 shares a day.

About PRSS: Continue reading →

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Cheap Stock Weekly Update May 13th 2014

Despite double digit gains in TSYS and DXM, we still we down 2.1% last week, cutting our YTD gain to 2.8%. Small caps got hit last week.. The DOW was up .4% and NASDAQ was down 1.3%. For the year, the DOW is even and NASDAQ is down 2.8%

DEX, MRVC and XRSC earnings last week.

Some of our stocks are just stupid cheap—compared to their net cash on hand per share divided by their stock price.

Check this list:

UNTD 45%
CCUR 28%
SIGM 73%
MRVC 18%
SYNC 59%

BLIN, DAEG, EXTR and UNTD can still be bought.

Last week we went 2 stocks up and 11 down. Since inception we are now 67stocks up and 18 down for a 78.8% winning percentage (80% is our target win %). Of our closed-out positions 59 have been winners and 13 have been losers for an 82% win percentage and a 34% average net gain per position.

Since our beginning, we have closed out the following positions: Continue reading →

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CSI Update: HOLD MRVC

MRVC announced Q1 results on May 8th. Revenues were $42.3 million up 9% from $38.9 million last year. GAAP net loss was $.58 a share, compared to a loss of $.59 per share last year. Non-GAAP loss was about $3.0 million compared to $4.4 million last year.  Our valuation fell to $23.19 from $25.49 last quarter but up slightly from $23.19 last year. MRVC is trading at about 50% of our valuation.  We will continue to HOLD as results showed continued losses, but sales continued to grow nicely,

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CSI Update: HOLD XRSC

XRSC announced Q2 2014 earnings (quarter ended March 31, 2014) on May 8th. Revenues were $12.8 million down from $14.5 million last year. XRSC is a bit similar to BLIN as they are transitioning their legacy software business to a subscription based service and revenues take a hit as they don’t book a big software sale upfront, but rather record it monthly in smaller pieces. But subscription based revenues are generally worth more to a buyer than one-time sales. GAAP net loss was $.07 a share, compared to a gain of $.01 per share last year. Non-GAAP earnings were $1.2 million or $.04 per share compared to $2.2 million or $.08 a share last year. Our valuation rose to $5.60 up from $5.57 last quarter. XRSC is trading at about 50% of our valuation. We will continue to HOLD as results were not that exciting, but the valuation is still compelling.

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CSI Update: Extreme Networks Inc.

Valuation-$8.52

Price May 7, 2014 : $3.95

We are back with EXTR. We sold EXTR in 2013 for a 63% gain. Then they decided to buy Enterasys and spend all their cash, but double the size of the company. So we sat on the sidelines. Now the price has fallen based on yesterday’s earnings report to less than 50% of our valuation and we are buying. We nibbled at EXTR just before earnings (our mistake) and were averaging down today. We will use all Non-GAAP numbers here, as all the accounting adjustments related to their merger, just don’t mean a thing to their business (pardon us SEC). Revenues came in at $143.7 million compared to the pre-merger $68.2 million last year. Earnings per share were $.02 compared to $.04 last year. Gross margins were 55% versus 56% last year. Net cash was negative $.16 per share. So in our view, a decent quarter. The company is still going through the merger integration and expects to achieve significant cost reductions ($30-$40 million a year).

For the upcoming quarter they expect to be at a $20 million saving run rate, versus $8 million in the March quarter. What apparently spooked the street and set the sellers off, was that they projected $145-$150 million in revenue for their Q4 (June 30, 2014) instead of the $159 million analysts were looking for. So the stock drops from $5.56 to $3.95 on over 9 million shares traded today. We think this is way overdone and that this is a good entry point. Trading at only 46% of our valuation we think this is a BUY.. There are about 100 million shares outstanding and it trades about 1.8 million shares a day.

About EXTR: Extreme Networks, Inc. (EXTR) is setting the new standard for superior customer experience by delivering network-powered innovation and market leading service and support. Extreme Networks delivers high-performance switching and routing products for data center and core-to-edge networks, wired/wireless LAN access, and unified network management and control. The Company’s award-winning solutions include software-defined networking (SDN), cloud and high-density Wi-Fi, BYOD and enterprise mobility, identity access management and security. Extreme Networks is headquartered in San Jose, CA and has more than 12,000 customers in over 80 countries.

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Cheap Stock Weekly Update May 5th 2014

Overall last week we were up 1.8% and are now up 4.9% for 2014. The DOW was up .9% and NASDAQ was up 1.2%. For the year, the DOW is down .4% and NASDAQ is down 1.3%

UNTD, TSYS and CCUR earnings last week.

Some of our stocks are just stupid cheap—compared to their net cash on hand per share divided by their stock price.

Check this list:

UNTD 43%
CCUR 28%
SIGM 71%
MRVC 26%
SYNC 55%

 

BLIN, DAEG and UNTD can still be bought.

Last week we went 4 stocks up, 5 down and 3 unchanged. Since inception we are now 67stocks up and 17 down for a 79.8% winning percentage (80% is our target win %). Of our closed-out positions 59 have been winners and 13 have been losers for an 82% win percentage and a 34% average net gain per position.

Since our beginning, we have closed out the following positions:  Continue reading →

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CSI Update: Telecommunications Inc. May 1st 2014

TSYS announced Q1 2014 earnings after the close on May 1. Revenues were $85.1 million down 10% from $94.8 million last year and up 8% from last quarter. GAAP net loss was $.01 the same last year. Non-GAAP net income was $.04, also the same as last year. Overall a decent quarter. Our valuation rose to $5.99 from $5.32 last quarter. TSYS is trading at about 42% of our valuation. Based on the valuation, this could be a buy, but we are up 85% and will just continue to HOLD here.

It’s earnings season! I will be updating the blog more frequently during this time. If you don’t want to miss out, be sure to click the “follow” button on the left side of the page.

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