Saturday, March 12, 2011

Stinky Week

Not a great week, capped off by both ARO and CMTL tanking post their earnings on Thursday evening. Obviously, everything pales in contrast to what is going on in Japan right now. I encourage everyone to make a donation to the Red Cross or a similar organization. I know I just want to try and help in some fashion. It is stunning to see the issues with the potential nuclear reactor meltdown, though I am very annoyed at the news question whether the gov't is being forthright with their citizens. Why does the finger pointing start so quickly? And it is pure speculation. Don't we have enough facts to focus on???
Coffee Break

Ok, I have now had my rant. Before I talk MFI I would like to focus on what I felt was one of the weirder stock moves of the week. What do you think has been the single best stock since 2000? What stock has been truly "magical"? I do not know if it is the absolute best, but I bet it is close: GMCR. The stock (adjusted for splits) has gone from 40 cents to $58.86. That is mind-boggling. If you had invested $10,000 back then you'd have almost $1.5 million!

Some might argue that this manufacturer of single cup coffee brewing machines and their K cups (a better invention than the razor blade) had gotten a little ahead of themselves... thus the 23% short ratio. But then on that terrible thursday this week, they made this announcement: Green Mountain Coffee Roasters Shares Surge 41% on Starbucks Deal (GMCR, SBUX) and the stock shot up 41% in a day! Talk about your basic short squeeze!


I did remove KSW from my MFI portfolio on Friday as it hit one year. It was basically a break-even year. The decision was made easier as KSW actually announced their preliminary earnings this week (KSW Reports 2010 Profits and Revenue) and while they were decent, I did not like that their backlog was decreasing at the same time the economy is supposedly improving. The stock is still cash rich and cheap, but is gone for moi.

Replacing KSW for me is AGX. I owned this stock a year ago. They are a small niche engineering/construction company. I bought them at $8.45 and a year ago when I owned them they were over $12. So I think there is upside. They also have a ton of cash, $5.62 per share.

1 comment:

David said...

I am following through google reader, so maybe your followers are actually in the double digits!