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Portfolio at end of December 2014

At bottom, find the makeup of my portfolio at close on December 31, 2014. I invest almost exclusively in microcap stocks.

The moves I made in December 2014:

  1. I sold my NightCulture (NGHT) position early in the month, taking a 37% loss in this penny stock.
    1. On November 9, I explained the long case for NGHT: A divergence of price and results.
    2. By December 3, I had lost confidence in NightCulture.
  2. Shortly after selling NightCulture, I bought Socket Mobile (SCKT), a maker of cordless Bluetooth barcode scanners. Mobile point-of-sale technology is an emerging industry (think Square, among others), and this little microcap company has first mover advantage among scanner makers. The stock has been good for a 33% gain so far, and on January 5 was added to MikeDDKing’s highly successful Swing Trade Portfolio.
  3. At the end of December, I sold 40% of my Pacific Healthcare (PFHO) shares in order to capture a tax-loss, losing 30% on those shares. In retrospect, it appears I could have done better holding them into January.
  4. Finally, on the last day of the year, there was a bit of a debacle in ALJ Regional Holdings (ALJJ). The company announced fiscal Q4 results by putting out kind of a glowing PR. The numbers looked outstanding on the face of things and the stock shot up. Then, as people dug into the line-by-line results in the Annual Report, they realized that most of the Q4 earnings were actually a tax credit, and that pre-tax earnings had actually declined markedly from Q3. A sell-off ensued. I was able to act pretty quickly and sell my shares at $4.41 for a 9% gain on the day and a 24% gain over the three months I held the stock.

 

Portfolio - Dec 2014

Nat Hunt

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