I've been sick

Most of you were waiting for my usual timely updates.
I am sorry that I could not log on. I was really sick. From the very beginning (October 2005) of my cancer battle, the last week was the worst. I had pain in so many different places that I didn't even care. My oncologist, gave me even more powerful pain medication (Fentanyl) to ease the pain.

Just so you know, I am now wearing a bag that collects my urin coming from my left kidney. Yes, doctors inserted a tube to drain the kidney. As if this wasn't enough, CT scan showed suspicious "things" on my hip bone (this may be the cancer spreading to my bones). Let me just say that I am in no shape to write in any length right now.

With your help, I will get better soon and return to this pages as soon as I can.

Quick recaps then:

RICK: when I first reccommended this in the $4's I said that we will see double digits on this baby - well, now you have it. If you have a double, take some off the table but definately hold on to some shares for the long term - just sold some at $9.80

IDWD: this went up almost 50% today - one thing you can not say is that IDWD is boring. I am still holding on to my most speculative shares - I am as curious as you are as to how this story unfolds - my last purchase was at $0.41

BTYH: you probably see the Southland shares in your brokerage account by now. My estimate is that during the second quarter of this year, these shares will freely trade with ticker symbol. Once again, BTYH owns 25% of Southland shares.

MIDS: Those to can afford - keep adding to your shares - we bought more at $0.60

CMGI: Keep holding - I expect much higher price by the end of this year

PRZ: Just added more at $0.77

New ideas: I am interested in REFR under $9 and IRBT under $14

The market is showing quite a bit of strength. U.S. economy is in a fine shape. However, it will take a rest before moving up again. Buy some QID is you have not.
I am really tired ...

RICK: our ace

If I had to guess which stock is most widely held by my readers - it is RICK. This is one of those stocks where you will want to hold onto it until ... The last time RICK was in trouable, price went from $9 to under $5 rather quickly. Most people didn't know what to do. We, on the other hand, advised buying more, lowering your average cost.

Some followed my advise, some did not. Those who didn't, is now kicking themselves you know where. RICK charged back up to $9 even more quickly, if you can believe that. So many people threw in the towel in the $5 range that I even used Apple (AAPL) as an example to calm people down (do you remember that? read past notes). I happened to know a guy who bought RICK in the $9 area and sold it in the $5 area (he said RICK was a piece of shXX). Emotion can play a powerful role in your life if you do not control yourself.

Did I know for sure that RICK will come back alive so quickly? Why was it down so much in the first place? When you are investing in the small cap area, many times things do not make sense. If RICK had been a large cap stock with numerous analyst looking into it, those wild moves probably would not have happened. And the truth is, I did not know for sure either. All I can tell you is that based on all available information, RICK was a buy, not a sell. If the company had been a fraud, there's nothing I can do. I just have to trust the SYSTEM. There will always be bad apples but more likely than not, the SYSTEM will take care of most of them.

I believe that most of our CEOs and managers are hard working, honest people. But I realize that there is always an exception. That's why we diversify. That's why we hold 10+ stocks in our portfolio. If you still hold only 2-3 stocks and your portfolio goes down big - don't bother calling me. You just broke the most important rule of this game. Good luck.

RICK just aquired a new club in Dallas. This outfit will add $4 million in addtional revenue as well as $1 million in EBITDA. Nice work. Eric, the CEO, is just cranking out the business plan as he said he would. When I met Eric, he looked 10 years older than he was (we are almost same age). And guess what, Eric holds over 2 million shares of RICK. Question: " Do you think he sold any when RICK was trading near $5 recently? I think not ".

Question #2: Mr. Nunan, the CEO of BTYH, and the single largest shareholder of Bad Toys: " Will he be selling his shares soon? I think not either".

Could PRZ be a fraud company (made up financials and all)?
Maybe. Could PRZ be delisted from the exchange (under $1 rule)?
Perhaps. Assuming it is not a fraud, it this a good deal at under $1?
Yes. Acetrader just added more of PRZ at $0.77 today.

Market will take a rest soon.
Don't go shopping now - wait for the 07' sale.

BTYH: spin-off

I feel I am at about 60% of my usual self.
Still having hard time eating solid food but slowly gainning strength back. I need to quickly get to the point where I will be able to do some excercises. Spending too much time in bed can not be good for anyone. Thank god for pain medications available today.

The truth is that I did not really appreciate the underlying business of Paincare (PRZ). I simply saw the value and made money on it. The fact that PRZ somehow has to continue "Paincare" services to individuals in order to continue making money - did not sit well with me. Think about it for a moment: why would any business send customers away quickly, voluntarily? The more pain you have, the better business it is for me. Well, I may be getting a little out of line here. But, now that I have constant pain for a while, I appreciate "Pain Management". Hold onto your PRZ shares. We will make our double in a year or so.

Here is the news on BTYH:
On February 1, 2007, Bad Toys Holdings, Inc. distributed seventy-five percent (75%) of the common stock of its wholly-owned subsidiary, Southland Health Services, Inc. ("Southland"), to the Company's stockholders as a dividend (the "Spin-Off"). In the aggregate, 21,111,521 shares were distributed in the Spin-Off at a ratio of 0.9825 shares of the common stock of Southland for each share of the Company's common stock issued and outstanding as of the record date of January 31, 2007.

The BTYH shares trading now represent only 25% of the value of Southland division. You do the math. My math tells me we are doing just fine. The bare minimum price of Southland shares will be $1 but I would not be surprised if it is well above that. Hold on guys.

As I have said before, this is not the time to buy shares. Let's wait for better entry point in a few weeks. In the mean time, we need to look for targets and study them carefully. Here is the list I am currently working on:
IRBT / SFUN / ASFI / MTLK / JDSU / LVLT
You may look into some of these and send me your thoughts.
I am willing to enter a position if above stocks get 10-20% discount from current price.

I'm back again

Hello, everyone.
I am back from two (2) surgeries last week. First, doctors inserted a tube into my kidney to drain it. Then, doctors had to remove the stent they put in place two months ago (this is done through your penis). The bottom line: I survived both and I feel OK so far.

Just so you know, I have not had a decent meal in the last 10 days. The 5 days I was in the hospital, I could not even have a drink of water (due to surgery). I am still on a strong pain medication all day. I am barely walking stright at this point. I will need a few days to regain some strength. I was very touched by some of your comments from the last blog. Thank you.

Since I can not sit for any length of time (there's a hole in my back), I am going to be quick and to the point. I will only tell you what you need to know now - further analysis will follow.

PRZ: Down 11% to $0.84 today. I know some of you are getting nervous - don't be. I know the value of PRZ better than most. PRZ is worth $2. My cost was $1.01 and I will add to it if this goes down any further. The truth is, you should be happy that you get a chance to buy this on the cheap. Remember, we bought this near $1 and sold it near $2 in two months, last time.

BTYH: The company has completed a spin-off. It is now trading without the value of Southland division. We should be getting the new stock in our brokerage statement soon. However, it will take some time before this new stock acquires a new symbol and trade in Nasdaq. So hold onto your shares - we did not get a chance to get out before the spin-off. Well, we will wait for the new shares to trade before deciding to sell.

IDWD: No news. Absolutely no news from the company. Without the updates from the company, some investors will try to bail out. This is why I always said IDWD is the most risky stock in our portfolio. Remember, recently, I bought more IDWD at $0.41 and I will be holding this until we know what's going on.

Even technology leaders like google (GOOG) is falling without any reason these days. When a leader is looking weak, the whole group will suffer. Market will be very weak in coming months. Most of our holdings will move on its own stories. If you do not see me every trading day, please do not worry. For the next week or two, I will be going in and out of the hospital for follow ups.
Thank you again for your concerns.