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.

Tuesday, November 21, 2006


Qadi announced earnings this afternoon. Looks like they were right around analysts (the few that follow them)estimates for sales and may have missed earinngs by $.01. Non-event in our opinion. Sales were up year-over-year by 11% and margins held at 60%. Cash per share fell to $1.03 and our valuation dropped $.04 to $13.69. As we said a non-event in our book. Still way undervalued.

PDLI announced that Roche ended another drug development deal on daclizumab for organ transplants. Stock dropped to $21.75 down $.92 afterhours. Presumably not good news, but really doesn't affect our opinion on the stock.

DWCH earnings are now scheduled for 11/28--postponed due to their CFO leaving in January. Have to wait till then to see whether this will remain our biggest dog of the year.


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