CSI TIP: BUY ATEC @ $1.56

Alphatec Holdings Inc. (NASDAQ–ATEC)

Valuation-$3.00

Price August 29, 2014-$1.56

ATEC has had some troubles lately. We personally bought ATEC earlier this year, but then sold it when it lost a $50 million lawsuit they inherited from an acquisition in March. We now own ATEC again based on recent performance.

Latest earnings were for the second quarter ended 6/30/2014. ATEC posted record sales and adjusted EBITDA. Revenues were up 4% to $53.2 million from $51 million and they lost $2.9 million versus a $4.7 million loss last year. They are projecting around $210 million of sales for 2014 and adjusted EBITDA of $30-$33 million. Our valuation based on the latest quarter is $3.00 a share.

Back in March when they lost the lawsuit they entered into a loan facility with Deerfield entities  (which own about 4% of ATEC) to be able to fund the lawsuit settlement. They currently have about $21 million in cash and $100 million in debt. They still have $31.5 million to pay on the settlement but are only required to pay this in $1.1 million quarterly installments.

Healthpoint Capital is a longtime holder of about 20% of ATEC.

Trading at only 52% of our valuation we think this is a BUY.

There are about 97 million shares outstanding and it trades about 180,000 shares a day.

About ATEC:  Continue reading

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Cheap Stock Weekly Update August 23rd 2014

We were down .6% last week. We are now up 6.4% for the year. The DOW was up 2.0% and NASDAQ was up 1.7%. For the year, the DOW is now up 2.6% and NASDAQ is up 8.7%

 MRVC earnings last week.

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

Check this list:

UNTD

40%

CCUR

30%

SIGM

52%

MRVC

17%

SYNC

48%

 PRSS, MRVC, DAEG, SYNC, SIGM and UNTD can still be bought.

 Last week we went 7 stocks up, 6 down and 1 unchanged. Since inception we are now 68 stocks up and 18 down for a 79.1% 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.

 The model portfolio assumes $10,000 invested in each stock (unless we double-up–then it is $20,000), less $10 commission each way (TD Ameritrade rate).  Continue reading

Cheap Stock Weekly Update August 18th 2014

We were up 2.8% last week. We are now up 7.0% for the year. The DOW was up .7% and NASDAQ was up 2.2%. For the year, the DOW is now up .5% and NASDAQ is up 6.9%

XRSC, DXM, PRSS, SYNC, EXTR, BLIN, CTIG and UNTD earnings last week.

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

Check this list:

UNTD 39%
CCUR 31%
SIGM 52%
MRVC 16%
SYNC 46%

PRSS, MRVC, DAEG, SYNC, SIGM and UNTD can still be bought.

Last week we went 7 stocks up and 7 down. Since inception we are now 68 stocks up and 18 down for a 79.1% 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.

The model portfolio assumes $10,000 invested in each stock (unless we double-up–then it is $20,000), less $10 commission each way (TD Ameritrade rate). Continue reading

Cheap Stock Weekly Update August 11th 2014

We were down 1.4% last week. We are now up 4.2% for the year. The DOW was up .4% and NASDAQ was up .4%. For the year, the DOW is now DOWN .1% and NASDAQ is up 4.7%

XRSC earnings last week.

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

Check this list:

UNTD 45%
CCUR 30%
SIGM 54%
MRVC 16%
SYNC 49%

PRSS, MRVC, DAEG, SYNC, SIGM and UNTD can still be bought.

Last week we went 5 stocks up, 8 down and 1 even. Since inception we are now 68 stocks up and 18 down for a 79.1% 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.

The model portfolio assumes $10,000 invested in each stock (unless we double-up–then it is $20,000), less $10 commission each way (TD Ameritrade rate). Continue reading

Cheap Stock Weekly Update August 4th 2014

The markets finally got whacked last week, bringing us along with it. We were down 4.1% last week. We are now up 5.6% for the year. The DOW was down 2.8% and NASDAQ was down 2.2%. For the year, the DOW is now DOWN .5% and NASDAQ is up 4.2%

TSYS earnings last week.

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

Check this list:

UNTD 45%
CCUR 30%
SIGM 57%
MRVC 16%
SYNC 48%

 PRSS, MRVC, DAEG, SYNC, SIGM and UNTD can still be bought.

Last week we went 2 stocks up, 11 down and 1 even. Since inception we are now 68 stocks up and 18 down for a 79.1% 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.

The model portfolio assumes $10,000 invested in each stock (unless we double-up–then it is $20,000), less $10 commission each way (TD Ameritrade rate).  Continue reading

Cheap Stock Weekly Update July 27th 2014

We were up 3.9% last week on the back of ARIS’s price rebound. We are over weighted in ARIS. We are now up 9.7% for the year. The DOW was down 8% and NASDAQ was up .6%. For the year, the DOW is up 2.3% and NASDAQ is up 6.5%

Some good EXTR news last week.

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

Check this list:

UNTD 45%
CCUR 30%
SIGM 57%
MRVC 16%
SYNC 48%

PRSS, MRVC, DAEG, SYNC, SIGM and UNTD can still be bought.

Last week we went 7 stocks up, 5 down and 2 even. Since inception we are now 68 stocks up and 18 down for a 79.1% 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.

The model portfolio assumes $10,000 invested in each stock (unless we double-up–then it is $20,000), less $10 commission each way (TD Ameritrade rate).  Continue reading

Cheap Stock Weekly Update July 20th 2014

Last week was an up week for us after three weeks of going nowhere. We were up .6% last week and are now up 5.8% for the year. The DOW was up .9% and NASDAQ was up .3%. For the year, the DOW is up 3.2% and NASDAQ is up 6.0%

No significant news last week.

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

Check this list:

UNTD 49%
CCUR 30%
SIGM 55%
MRVC 16%
SYNC 47%

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

Last week we went 8 stocks up, 5 down and 1 even. 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.

The model portfolio assumes $10,000 invested in each stock (unless we double-up–then it is $20,000), less $10 commission each way (TD Ameritrade rate).  Continue reading