Tuesday, August 23, 2005


Running out of ammo with SMTX

Up $60 for the day. I'm down to my last 1500 shares of SMTX. The thing just won't stay down. If it goes firmly above $3, I'll have to exit the position entirely. Perhaps the stock will then proceed to $5, I don't know. But at $3, SMTX already would have a market cap of about $50 million, which implies a price to sales ratio on par with bigger and healthier competitors in the EMS industry. I've achieved a modest level of success by buying low and selling high, not by buying high and hoping to sell higher. Experimental portfolios notwithstanding, that's not my game.

I picked up 3000 more shares of MACE. For several years now, MACE has been the laughing stock of the NASDAQ. However, lost in the sarcasm is the fact that the company's fundamentals are improving rapidly. I think eventually MACE will get the credit it deserves and go higher. In the meantime, I see little downside risk given that the stock is trading below tangible book value.

KTCC reported strong numbers after the close. Hopefully the gains the stock enjoyed in afterhours will continue tomorrow.

Agree on MACE
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