Hi all,
I've subjectmarked your board about two months ago and been a regular reader of it since.
I've made some value investments in lowpriced techstocks over the last 18 months and all of them were succesful for an average profit of over 100%. (Be sure, I lost a fair amount of money on other strategies also)
My strategy for buying them was mostly based on a serious discount to cash assets, low price, small cap, no debt, low cashburn and business potential or a catalyst of some kind.
MYPT (Mypoints.com - acquired)
TMNT (Telemate net ventures - acquired - presumably only for its cash)
NTPA (Netopia - takeover offer ran the price up, was canceled afterwards when bidder's stockprice collapsed)
ABTL (Autobytel - turned EBITDA profitable)
I recently established a small position in OBAS at 2.35$ ( Optibase, active in MPEG decoders for streaming media and video on demand, Israel based company with operations all over the world, never recovered from the sep 11 panic drop, no debt, trading at about 70% of cash, trimmed their operational cashburn down to zero, significant rev's)
My rationale is that OBAS's cash (and absence of cashburn) provides a nice cushion for the time being. Video on demand and highspeed streaming media is a potential high growth field in the years to come and I would be very surprised not to see this market heat up somewhere in the next years.
Any ideas anyone ?
I also own IDT as a value play (I came across IDT mid 2000 and today it is about the only one left standing in the midst of the telco meltdown with no debt, over 1B$ in the bank, growth and an impressive mgmt) Anyone holding this one ?
I am also looking at cheap biotechs but I am not sure whether a discount to cash is sufficient for a good investment decision in this field. At least some of the companies are far from fully funded and will run out of money some day without fresh capital. I want to do some more research before going in.
dimitri |
