Session of 02/22/2007

[David Randolph]

Good morning

At first, when I saw CPNE's numbers out today (http://biz.yahoo.com/bw/070222/20070222005313.html?.v=1), I immediately thought I should sell it here on the 3 Stocks on Fire Portfolio, but as I walked for a coffee I saw it with fresh new eyes, the eyes of someone looking at the stock for the first time.

Those eyes see:

- $0.18 full year 2006 EPS. Means trailing earnings multiple of $3.32/$0.18 = 18.4
- 275% year on year revenue growth
- 4th quarter basic EPS of 9 cents and fully diluted EPS of 8 cents. Multiply this latest number by four quarters, and not considering potential growth, which is a lot, one easily gets to a forward earnings multiple of 10.4.

This looks very cheap to me.

But, there's the possibility of the market, as I and Michael did, expected even more. Today there will be a struggle between people that are new to the stock and see outstanding numbers, and people that were already in the stock and expected even better numbers.

I don't know who will win the fight. I'll let the market speak, and I'll listen. If CPNE.OB starts falling down and prints $3.15, I'll sell my shares held here on the 3 Stocks on Fire Portfolio, which were bought at $2.08. If the stock opens and starts rising, surpassing the most recent high of $3.48, I'll probably keep holding. Will also listen to the webcast at 11:30 am ET (http://biz.yahoo.com/prnews/070212/lam057.html?.v=82).

By all means I'll keep on holding it as a long term investment at the Main Portfolio, very hard to find such an attractive small cap.

I think today can be ETLT.OB's day to push significantly higher, we'll see. I'll also continue to hold PFSW.

By the way, I welcome your suggestions to cover some more stocks today, thanks

[la-onda]

hi david,
what about BRNC?
http://biz.yahoo.com/ap/070222/earns_bronco_drilling.html?.v=1

cheers from SG
Oliver

[kpunarc]

CLRT?

[David Randolph]

I was distracted selling XING first, sold CPNE.OB just now at $3.2.

[tireslinger]

Hello David. I think that I will just maintain my position in cpne.ob. It was tempting  to sell but I decided just to hang on and make the big profit later on. I am not going to watch the stock today I think I will go for a walk instead. 

[David Randolph]

Bought TRMM @ $3.25.

[TraderStar]

I'm holding CPNE as well for the moment, will watch it today. 

Not sure if I suggested this earlier, but what about AWNE?

The board is very slow today .. at least for me .. takes a few minutes for anything new to load...

[Jim897]

David,

I'd like to know what you think of EXM?  It has a great chart and forward PE of about 7.

Jim

[David Randolph]

Hello David. I think that I will just maintain my position in cpne.ob. It was tempting  to sell but I decided just to hang on and make the big profit later on. I am not going to watch the stock today I think I will go for a walk instead. 

Well, I'm also keeping the majority of my CPNE.OB shares for the long term. I see any dip as a buying opportunity.

But I had the plan of selling it today, here, at the 3 Stocks on Fire Portfolio, for long, so I respected the plan.

On to another speculative venture (not new), TRMM.

[Sterlis]

I'm still holding CPNE and it has rebounded to 3.24. It was a tense 15 minutes at the open though!

[TVandenbosch]

VDSI - see my post of yesterday - up another 5% today

[txo066]

David,
     New to the site.  I like your research.  Can you give me your opinion on OFI? 
Thank you.

[brucey]

PLRS breaks out with good news annouced.....reach high of 0.08
now 0.075,15% up
Compare the volumes in 09/206 and this month: there were 3 days that volumes are over 100m shares,but price doesn't go up a lot,but this month,sometimes less than 1m shares volume can push it high....
So what does it mean?

[echo]

[Bought TRMM @ $3.25./quote]


David,
Can you explain why you bought a company that reported a loss of $5.98 a share. Is it future guidance?

Thanks, echo

[bocasva]

Today, I finished transferring most of my funds to my new broker ZECCO.

The first stock I've bought is TRMM and it was a normal and speedy execution.