Trimmed CBK yesterday by 25%, so it now makes up about 7.5% of the entire portfolio. Also added a new Canadian stock to the portfolio yesterday, Gamehost Inc. at CAD 8.16 (5% of the portfolio). I’m working on the write-up for it right now. I sold off magicJack at a 5% loss. It had a net effect of -0.5% to the entire portfolio, a very expensive mistake. The portfolio is nonetheless, still positive for the month February.
I am going to sell magicJack (NASDAQ:CALL). I recently purchased this name twice. While running through the company’s balance sheet, I noted that the some of the cash on there is restricted cash, but is not labeled as that. I did not initially realize this until I looked at the liabilities section and saw a large $100 balance of deferred revenues. While I was hoping that the company would be able to use the cash to repurchase shares, I now realize that it will likely not be the case. What I perceived to be an Enterprise Value of $40 million is not $40 million. Though the company is still cash generative and is what I perceive to be just fairly valued. The average cost of shares was $7.59, and the stock closed at $7.59, so the loss here is the trading costs. Hopefully, it opens up on Monday so that I can break even. My apologies for this. I only glanced through the company’s financials a few months ago, but not in-depth enough to catch the issue, so I was focused on buying this at a good price before fully analyzing the company. Will likely post one more long or short this weekend and next week.