One year later!! MLD_38 are you still following Tobin's picks so diligently as in the past?
Tobin hit the nail on the head with this rec! Wait until you see what's in the 10K!! There has been major dilution. The A/S has ballooned. Virtually no revenues!!!!
2. PORTFOLIO PRUNING
SELL VOYANT INTL. (VOYT) AND X-CHANGE CORP. (XCHC)
Sometimes you've got to remove the deadwood.
The data from our ChangeWave Alliance research -- from the macroeconomic to the sector levels -- has never looked so darn ugly. In this environment, it's wise to unload the components in our microcap portfolio that are struggling the most.
Those are the companies that have not been able to create a sustainable business model, and don't have sufficient cash positions or ready access to capital and partners to carry themselves through a broad downturn.
Even for nanocaps, Voyant (VONT) and X-Change (XCHC) have become too speculative because of their total lack of visibility and the industry trends (bandwidth boosting and RFID respectively). In this economic climate, these arenas have become way too competitive for fledgling firms.
Another reason for selling them is that microcap investors must be positioned in the strongest companies with the best prospects for the next quarter or two (see the Fresh Money list below). Unlike VOYT and XCHC, our leading microcaps are clearly in the process of transforming themselves into bigger and better companies.
Sell Voyant Intl. (VOYT) and X-Change Corp. (XCHC) at the market and invest the proceeds in one of our Fresh Money picks.
And, as always, we're working hard to uncover the next microcap winners by researching the industries that offer us, as investors, the best opportunities in 2008 and 2009: Alternative Energy and Clean Tech. In fact, we expect to be able to introduce a new microcap recommendation in a week or two.
"Common sense and a sense of humor are the same thing, moving at different speeds. A sense of humor is just common sense, dancing." - William James
