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.

Thursday, July 17, 2008

Datalink Q2 Earnings

DTLK announced Q2 results last night. Looks like demand for data storage continues to be good. Q2 revenues were up 23% and they made $.10 per share (non-GAAP, but fully taxed) up from a essentially breakeven last year. Outlook for Q3 is good also-$49-$53 million in revenue and $.09-$.13 per share non-GAAP EPS.

Our valuation increased to $10.49 per share from $9.97. Cash of $28 million is $2.24 per share and was 45% of yesterdays closing stock price of $4.95. We are up 16% on DTLK. We like the stock, but if it should hit $6, we would sell for a 40% gain.

In this market, gains have been hard to come by.


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