Wednesday, April 26, 2006

Sold AOOR and Reduced PTSC

AOOR got a inflow of about 400,000 shares in early trading yesterday and jacked up the price about 13% and set off one of my limit orders. My position in AOOR gained 10% in under 2 weeks, not too shabby for a junk company worth nothing but speculation on Biodiesel. Bush's mentioning of Biodiesel yesterday happened to be pretty in sync with the jump. I wouldn't be surprised if there was a rundown in AOOR's price and may re enter somewhere below 62 cents/share and wait for te next jump when Willie Nelson does his Biodiesel PR.

PTSC still has alot of potential under its wing. their patent portfolio has cash cow potential, which in a company which consists of 6 people that overpay themselves and various lawyers, can lead to plenty of profits. They announced in a PR Newswire Monday which included share buyback with future revenues.

PTSC's Patent Portfolio is like Rambus on a smaller scale. and what P/E is Rambus Trading at? 127! imagine PTSC win's their court case down in texas against the Japanese companies. Fujitsu already rolled over and cut a deal, Intel and AMD have already paid up, and AMD even owns shares. I'm actually considering buying back what I sold at 1.17 if it drops below 1.10 sometime before the Share Holder's Meeting this Friday.

The only complaint is that some Brokerage's haven't been that good at distributing PTSC's dividend, namely the TD Waterhouse section of AMTD. Their recent merger will cut down on costs eventually but its just a sign that they have some kinks to work out. Even though they doubled their profit for Q1 '06 vs Q1 '05 their flat trading expenses pushed down their 2007 expectations. The one thing is these expectations don't factor in new and retained customers as a result of cheaper trading costs. I still would shrug this stock off if it weren't for the Insider Buying going on, which is generally the best indicator of future growth you can get.

So AMTD is a buy In humble opinion, easy 2 dollar upside if you can pick it up below $19.50, but prepare for a bumpy ride cause the bears have been all over it since their earnings call.


At 6:26 PM, Blogger Salbert said...

Hmmmmmmmmmm....... yeah that RMBS is crazy, but it keeps winning.


Post a Comment

<< Home