Tuesday, December 15, 2015

My Two Micro Portfolios

Perhaps I am rationalizing, but I do believe this is an excellent time for me to be starting Micro MFI portfolios.  Small cap stocks have been crushed a& lot more this year than large caps.  The IWM (Russell 2000) is down 5.6% for the year. The S&P 500 is off 0.7%. The Nasdaq is actually up 5.7% (probably all NFLX & AMZN).

So my two tranches have quite a few stocks with some very good prospects, then a few "dogs" that are just too cheap  (aka Cigar Butts).  With ten stocks all  so cheap, I will have some flops but should have a reasonable chance at some out sized gains.

August Tranche

8/28/2015 Start Current Dividend Pct Gain R3K Gain
VNCE $8.50 $4.56 $0.00 -46.4% 2.4%
ONE $1.99 $2.70 $0.00 35.7% 2.4%
TPUB $11.60 $9.37 $0.18 -17.7% 2.4%
LQDT $7.26 $6.73 $0.00 -7.3% 2.4%
PERI $2.45 $3.53 $0.00 44.1% 2.4%
Totals 1.7% 2.4%

This tranche has been a rollercoaster.  With these volatile stocks, when you buy can make a huge difference.  If I had bought a month later, I'd have gains in excess of 20%.  ONE has sold off a lot lately.  They looked to be on their way to a double.  They did have an announcement this evening (
Higher One Holdings, Inc. Announces Sale of its Disbursements Business
), it is difficult for me to tell if this is good news.  The market basically has yawned.  PERI has been the hot stock of late with purchase of Undertone (Perion Acquires Undertone).

This analyst thinks the PERI deal was great and has the stock poised to go past $6 (Analyst: Perion Shares More Compelling Following 'Shocking' Deal).

December Tranche

12/15/2015 Start Current Dividend Pct Gain R3K Gain
MGIC $5.38 $5.39 $0.00 0.2% -0.3%
BSQR $6.00 $5.86 $0.00 -2.3% -0.3%
SPCB $4.52 $4.60 $0.00 1.8% -0.3%
WLDN $8.64 $8.36 $0.00 -3.3% -0.3%
MNDO $2.58 $2.56 $0.00 -0.9% -0.3%
Totals              -   -0.9% -0.3%

Obviously I like all five names. We'll see how it pans out a year from now.  It is funny, even a relatively small investor like me has to be thoughtful (using limit orders) in buying these micro caps.

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