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Strategies & Market Trends : Value Investing
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To: Jurgis Bekepuris who wrote (52494)11/12/2013 1:04:06 PM
From: Jurgis Bekepuris   of 78802
 
UVIC is a position that has not worked very well for me. I held it for long time and sold a bunch this year as the business seemed to be deteriorating. Now the stock is at highs and I am not benefiting much. They are promising positive growth next year, but I am not certain that they can deliver. In short: another example where large position did not work well for me.
I don't particularly like to post about microcaps, but I decided to update the info about UVIC. I think there might be only 1 or 2 people interested.

So the story was that UVIC seemed like a good company couple years ago. They had a bunch of royalty payments. They bought out large shareholder which pushed their debt up and the equity to negative.
Still it seemed like the business was worth investing in.

I bought a bunch and had a large position. There was also a hedge fund guy who bought a bunch and got on the board.

Fast forward to this year. The royalty stream is dropping. They invested a bunch of money into new equipment for new products. It does not seem to have produced a big bump in sales. There was some increase, but it did not offset the royalty drop.

So I sold a bunch early this year. The stock has run up since then. Two individual investors acquired large stakes. On the other hand, the hedge fund who got in couple years ago was just bought out by the company. I am not sure where they got the money - perhaps they took more debt.

So overall, the results are going down, the stock is going up. I sold even more as the stock was going up. I hold very small position now. I guess if one believes the management that the next year's results will improve, then the stock might still be a hold.

Anyway, it's a bit of a rambling post. I am looking for any insight of what I missed, am missing or whatever. :)
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