OK, you don't want to buy a basketful of net-nets? How about just one. Sorry, but a day late. Government Technology Services, a computer distributor to government accounts, trades as GTSI. This has been a net-net off and on (mostly on) for a while now and it has always been on my borderline buy list. Net-net value is about 4, and it was trading under 3 last Thursday when rumors of a deal with Redhat to distribute Linux started to come out. I bought at 4 at today's open and it closed above 5 on huge volume. Maybe its too late, maybe not.
I just looked at this as 1) if you can't beat 'em join 'em, but on my terms; and 2) an asymetric risk-reward in the very short term. Whatever the economics of distributing Linux, here we have a stock with a downside of about 3 that could have a reasonable shot at an exponential move if the day traders were to discover it. It has a very small float. The rumor alone has nearly doubled the stock already, on building volume.
I know, not a usual Jim Clarke type pick, but I did purchase it right at net-net value. Just bought a small amount to see what happens. Probably at least worth watching to see if value and Linux can mix. |
