Wednesday, August 17, 2005


Lightening up on SMTX; loading up on CALL

SMTX kept me out of the red again today. The stock soared another 50 percent, boosting my portfolio by nearly $5,000 to a new all time high. As I usually do in such circumstances, I took some money off the table and sold 40 percent of my shares. I used the proceeds to double down on my position in CALL. I now have 4,000 shares of CALL, and will gladly buy more if the price falls further. As far as I am concerned, CALL is a no-brainer. The company is profitable and has $56 million in cash and no debt. It's true that their core business is under pressure and that management is projecting a decline in operating earnings next year. However, they are developing new technology in the wireless area, which should help propel earnings in subsequent quarters. Plus, with such a healthy cash position, I regard CALL as a nice hedge against higher interest rates. If short-term rates keep rising, as Fed watchers expect they will, that will generate more interest earnings, which will help boost CALL's bottom line.

what are your thoughts on PSRC? how long are you gonna keep it?
I despise PSRC. But at these prices it's just too cheap to pass up.
What's your rationale behind hating psrc and why do you think it's cheap?

Thanks in advance, I see you own it and am considering purchasing some.
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