Wednesday, July 20, 2011

Three's Company

Best Day in Long Time

They say good news domes in threes and I certainly had three pieces of good news yesterday in what was my best MFI day in many days. I was up 4.98% versus the Russell 3000 being up 1.78%. On a dollar basis, it was my third best day ever (that seems fitting with the theme), and the best since the dark days, 10/13/2008. I apologize again for limited postings. I just got internet yesterday in the new house and am in Phily traveling right now.

IDCC - I got an inkling that it might be a good day hwen IDCC put out this headline (InterDigital Exploring Potential Strategic Alternatives) yesterday morning. I had been saying (I ported on Motley Fool) that IDCC was way under-valued based on recent Nortel auction. I guess the BOD agreed and thus put up a for sale sign. The stock popped yesterday by 28%. I still think they are undervalued, it will be very interesting to see what types of offers they get.

NEWN - This has been a painful stock to own. That being said, they spiked 70.9% yesterday! I do not have the best memory in the world, but I am pretty sure I have never had an individual stock go up over 70% in a day before. I seem to recall PNCL jumping about 50%. They did have some news (New Energy Systems Group Develops Three New Products for Tablet Consumers), but I think it may have been a short squeeze. It will also be interesting to see what the stock does today,. The day did make up some of my losses on NEWN, but my cost basis is $6.31 and it is now at $3.93. So I frankly need another 70% day. I kinda expect that NEP will see a similar spike down the road. I have not entirely forsaken this sector.

AAPL - AAPL was an MFI stock for a nnano second back in the depth of the 2008 plunge as it dropped to $81. I had kept my eye on them and when they hit the screen a second time, dropping below $327 I bought them June 24th. Their earnings last night justified my investment. They doubled their earnings! For a company that has been on their growth trajectory to double their earnings is nothing short of spectacular (Apple smashes Street views, shares soar). The stock will likely open today in the $390s, but their quarter was SO good that despite the 20% rise since I bought them, they may reappear on the MFI list shortly.

So you could say I won the battle yesterday, but it is still a long slog. I am now up 4% since starting this in February 2006 while the Russell 3000 (assuming cash was invested over two years like I did it) is up almost 8%. We will see what the daylight brings today.


AndrewsDad said...

You still think IDCC is cheap, even after a nearly 70% run up in the last 2 days?

I am thinking of selling.

Marsh_Gerda said...

I will hold my shares. But I do not think I would buy more at this price.

AndrewsDad said...

And up another 10% today so far... wow.

Paul T said...

I decided to dump half my IDCC (seeing I was up almost 100% since my June 15th purchase.) Don't want to get greedy, and wanted to lock in a profit.