Tuesday, December 13, 2005


Pipe dream

Up $1,100 yesterday and another $1,200 today. Although this performance is decent, it should have been better. I fumbled the ball twice. First fumble: DAIO. I had been stalking this stock for several weeks but somehow never managed to get my buy limit order filled. The stock moved higher last week and then exploded on Monday (though it gave back some of that gain today). Oh well.

Second fumble: TAYD. The stock moved sharply higher this morning after the company announced a big contract (big by TAYD's standards at least; about one quarter's worth of revenue). Although I took some shares off the table at $4.15, I kept most of them. Turns out this was a mistake. The stock moved as high as $4.86 and then drifted back below $4. Should have made more money. Oh well (again).

Anyhow, I have a new position to reveal. The stock is MFRI. The company manufacturers pipes and other boring things. It's trading just below book value and only about 20 percent of revenue. The company is profitable, though sales growth has been week and frankly, there has been more dilution in the stock than I would like. Nevertheless, I think the risk reward calculation is favorable. I'm in for 2,500 shares at $5.30.

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