Internet Stock Review, Thursday 5/14/2009.
Chicago, 54..67F Rainy.
Port Jefferson 56...61F Rainy (200)
In Alphabetical Order.
1. Adoodle (ADDE) $0.12, Symbol Confusion.
2. Aerotech (ARTX) $1.07, Numbers Out.
3. GeoVax Trading (GOVX) $0.25 Trading Strong.
4. MVC Capital (MVC) $7.98, Added to Watch List.
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We are in our Port Jefferson, NY office setting up a television broadcast studio for a show called the "Wide Wide World of Stocks." While we haven't worked out the kinks, it will no doubt be highly entertaining. We are contemplating airing it on the ION network, which reaches 94 million homes. And that's a scary thought.
This is a practice site for chuckles, so it might look something like this...or not at all like this... http://wideworldofstocks.ning.com/
A friend of ours today demanded we go on Twitter, we think is the lowest form of communication known to man -- but we complied, after he offered to pay for all of our martinis.
What we'll do, if we remember, is say "note out" and maybe include symbols and then link to the Internet Stock Review blog -- which we are updating only about 1/2 our letters as it is.
Private Equity Stock Review
Adding MeVC (MVC) $7.98 to the Private Equity Stock Review.
There isn't massive upside potential here, but more like a supercharged mutual fund. We've been following this for years. The most recent high was a few pennies below $20 in the summer of 2007.
Very simple story and what we like is:
$17 net asset value vs an $8 stock price.
This is the type of information which makes you rub your eyes and ask, "Am I reading this right?"
As of January 31, 2009, the Company's net assets were approximately $419.8 million, or $17.28 per share, compared with net assets of approximately $421.9 million, or $17.36 per share, at the beginning of the quarter and $387.5 million, or $15.95 per share, at the end of the same period last year. During the quarter, the Valuation Committee, which is comprised of three independent directors, determined to adjust the fair values of 11 portfolio companies, resulting in an aggregate net decrease of $2.8 million or $0.11 per share. In arriving at these determinations and consistent with FAS 157, the Valuation Committee of the Board of Directors took into account a variety of factors including, the growth of various portfolio companies as well as declining market multiples. Although many of the Fund's portfolio companies were able to grow their businesses during the period, the erosion of public comparables in some cases offset this growth, resulting in downward valuation pressure on certain companies.
"Three independent directors adjusted the fair values of 11 (private) portfolio companies. It's like American Idol for stocks. Now that's some fancy, dancy accounting capabilities. It's hard enough valuing public companies.