I am going to touch on a lot of stuff in this post so bare with me. Some of it is on how I found some of the recent Net-Net big gainers. You might want to put the coffee on. This one is full. Skip down to LDIS and IFON at the bottom if you are in a hurry.

Usually when I find a Net-Net (net current asset) stock that I like it is in a nasty downtrend and pretty much for lack of a better word, dead. These next two that I just noticed are a little different because they've already had a good run and have some good price action going for them. Before I get to them though I want to add a little more clarity on the last couple Net-Net's I posted on. SDBT and ACTS.

SDBT looks like the downtrend is over technically I feel but I'm not as confident on a buy and hold contrarian play if you will without cutting a loss because they don't have the kind of business model that a lot of successful Net's I've seen have. It looks good here technically but if it breaks this trend line and falls below $2 this rally is probably going to stall or fail. I first posted on SDBT in December of last year actually when the stock was bottoming in the $1.20s.

ACTS I wanted to get on the blog because it is less than net cash and these are usually good to follow. Net cash stock Soapstone SOAP that I posted almost exactly a year ago looks like they are going to liquidate for a total of $4.00-$4.50. Much different financial statements but there's often good trades or value to be had in net cash.

The best thing with ACTS I saw about it though was the run it has been having with the overall market and the nice action on the uptrend. I put it up real fast and didn't talk about the price action until Jae left a comment. I like the net cash but I appreciate the technicals more so right now. If it continues the run to $2.20's or does some good volume at $2.10 it looks real good. If this keeps falling to $1.80s it might easily re-test the lows.


Now, to the second half of the post on what I've been doing and not doing with Net's these past several months. I haven't been scanning for them with fundamental screens as much until just this past week. Well, I actually took a little bit of time for that awhile back when I found HURC, MLR, AEY and JOB and put them into one post.

It was pure technical analysis scans that put these recent big gainers right in front of me. Even before the fundamentals shifted and news came out with PIR. I found PXG at $.12, PIR at $.12 and AERG the day before its 122% run from other technical scans that had zero fundamental data in them. Check out the very bottom of this post on PXG before I even realized it was a Net. I saw PIR in an unusual volume scan at $.12 which was right at the bottom. PIR hit just over $2 a month and a half later. Over a 1,600% return. I can't remember if the candles helped it stick out on PIR or if it was just the ROC and volume. Candlesticks mostly spike big anyway on a high volume spike. AERG was a spike day and long candle.

It's funny I just felt like sharing more on my technical scans because I just answered an email from someone asking how I screen for Net-Net's. I gave them the two free fundamental screens I like to use at Grahaminvestor.com and Zacks.com.


Net-Net's LDIS & IFON
LDIS had a good week even though the market sold off. LDIS has $27 mil in NCAV and a market cap of $21 mil. They aren't profitable. They sell LED's for the flashes in cell phone cameras and audio circuits for different products. Dialectic Capital Management LLC had 10% of the float as of March. This might seem crazy but this company has little fundamentals going for it (unless next quarter is great which I'm interested in) but is gang-busters since early January. That is a very nice uptrending chart.















Check out these back to back volume spikes. Recently, so far, when they come back to back like that the stock has kept the move going. This stock hasn't been correlated to the Nasdaq except for the beginning of the year. This stock was actually rising in the last market correction this year. As of now I want to be a buyer of this stock on a pull-back off that trend line.















I found IFON in one of my trading screens over last weekend because this thing jumped off the screen technically at me. I put it in a post or on Twitter the other day. I didn't check the balance sheet until a couple days ago. Some of these fundy's were jumping a little to.

$25 mil NCAV
$24 mil market cap

They distribute wireless handsets in Central and South America and distributes high-end products under the Verykool brand name. They posted a profit in Q1 of $.02 vs a loss of $.03 year over year. They drew down $21.5 million of the $45 million credit facility.

They have zero long-term debt and have been reducing their short-term debt every quarter since June 2008.

This big a run so fast makes me a little nervous but I'm watching it for a breakout especially over $2 for a buy or a flag to form with some kind of technical signal.

































full disclosure: no positions at time of writing