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.

Comments:
WOW!!!
 
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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