Tuesday, December 06, 2005



Despite a nice move in FRSH on news that the company was being bought out, my portfolio struggled today, finishing down about $500. I picked up 4,000 shares of Delphax (DLPX). The company's business has been going sideways for several years now, but the they continue to boast nice gross margins and the stock is trading below tangible book value and close to its 52 week low. The company reports earnings tomorrow so I may be cruising for a bruising by buying now. However, I think even if the numbers aren't great, there is limited downside risk in owning this stock and frankly, limited downside risk is an appealing concept when you're investing in a market that is as overbought as this one.

Good pickin', DLPX earned .04/share. But keep in mind that .03/share of the net income came from an income tax benefit.
True, but if you back out the foreign exchange loss, you end up back with 4 cents in earnings.
Didn't notice the foreign exchange loss. Thanks for pointing it out.
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