Monday, May 6, 2013

Performance Update for Week of 4/29 - 5/3

We did not have a chance to post our weekly updates (or any other post) for a couple of weeks.  We are certainly trying our best to remain consistent.
  • AVID has actually hung in there better than we thought.  The Company has not yet updated the Street regarding its review of how it recognizes some services revenues.  It also has not provided any color about if or when it will release FY '12 and Q1 '13 results.  If this issue is resolved, and we currently have no idea whether it will be or not, then based on our $9/sh valuation, there is a 31% upside.  However, such upside is associated with a lot of risk.
  • Some good Q1 results and positive guidance brought some attention back to BCOR.  It is only 7% away from reaching our valuation of $19/sh.  For this reason, our 'undervalued' label is pretty close to becoming an exaggeration.  We could see some profit taking this week, especially given the big jump in the name late last week.
  • FB went up a bit after its Q1 results, and we continue to view it as overvalued.  Others have similar opinions on FB as we posted a bit earlier today.
  • IACI has been moving up steadily.  Its near 2% dividend yield is a plus.  It came within 8% of our initial $52/sh valuation.  However, we upped it to $54/sh, and with that, there is still a 12% upside, even after the near 20% gain since late Jan.  We note that similar to BCOR, our 'undervalued' label on this name is pretty close to becoming an exaggeration. 

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