Cheap Stocks

We focus on undervalued small-cap stocks. Usually with a large cash cushion. We have developed a valuation formula that has been highly successful, especially on small tech stocks. Since 2006, we have closed out 49 stock positions with an average gain of 37%. 9 stocks have been taken over.

Sunday, April 30, 2006

Datawatch (DWCH)

DWCH announced earnings on 4/25. They were very good. Sales were up 6% and they made $.04 per share. They released some details on their new acquisition. I believe this will be accretive to earnings going forward. They will use most of their cash for this deal, but have arranged a $3 million credit line, so they should be ok. Valuation has moved up (incorporating the estimated impact of the acquisiton) to $9.31 per share from previous $7.50. Buying more at this level since stock did nothing--closing Friday at $3.77 up only slightly from our $3.66 buy price.


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