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.

Saturday, August 01, 2009

Buy Datalink--Again @ $3.05

This will be our 5th trip on DTLK. Average gain the last 4 times was 35%.

Their Q2 sales (June 30) decreased by 16% to $43.7 million, but they maintained profitability albeit only $.02 per share. Cash on hand was $2.10 per share and our valuation was $9.18 (up from $8.55.

As with the last 4 trips, there appears to be limited downside on this with the $2 cash cushion, and, at least a 30% upside with any kind of positive news/results.


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