Bought into DRAD w/ avg of $1.51 as well by selling a long time holding. Thought it would be a quick flip and buy back in to my other position. Was tempted to sell during the runup, but holding it after looking through the numbers and looking back a couple years. They are returning to profitability and gross margins have improved due to shuttering of some business ops. Revs are down a bit, but that goes with scaling back their ops a bit. They have solid cash/marketable securities levels, which they have held over the years. So they are really poised to continue posting nice numbers.
Looked through the numbers over the next few quarters. Given the state of the economy, the fact they can turn around their numbers in this type of environment bodes very well in the future. I think this stock is safely valued around $4, based on a conservative market multiple of 15 for this industry going forward on this Q's earnings + their cash. This stock used to be worth $5 when they were not earning money and $12 when they IPO'd in 2004. This is now about a 7.3% position. This seems fairly low risk to me.
