Some Microcap Quick Hits

 |  Includes: ADES, HIHO, SPGZ, VICL, ZIXI
by: Microcap Speculator

A few notes from the trading turret:

  • Some of you want to know if I trade any of the stocks coming up on the Century Club scan based on MarketClub’s smart scanner. Sure I do. Last week, for example, I bought Ada-Es (NASDAQ:ADES) and Vical (NASDAQ:VICL). Both bucked the dismal market and barely stayed green.
  • Highway Holdings (NASDAQ:HIHO) is off about thirty cents since the last post, down very close to my entry point. I still like it, especially after HIHO declared a three cent dividend. If that becomes a quarterly event, the yield would be about 9%.
  • One of my all-time best shorts was Zix Corp. (NASDAQ:ZIXI) formerly known as Zixit. Lucky or right, I took this one down in the 80s in 2000, and rode it all the way to mid single-digits. I hadn’t given Zix a second thought since I covered in 2002, but was surprised to learn that Zix is almost profitable. Turns out that HIPAA and other regulations that all the Ziximaniacs thought would send Zix to the stratosphere are actually beginning to pay off. Put this one on the watch list.
  • As right as I was on ZIXI, I was just as wrong on Star Scientific (STSI). After a court entered summary judgment against it, I thought Star Scientific was kaput. Oops. The court of appeals reversed and breathed new life into Star Scientific, allowing Star to take its patent infringement claims against Reynolds American (NYSE:RAI) to trial. But Star couldn’t convince a jury that Reynolds actually infringed its tobacco curing patents. If Star doesn’t get a new trial, I don’t see how it can survive.
  • Remember Escala, the stamp-trading and collectible company that fell to the pink sheets after the Spanish corporation that owned most of its shares was exposed in an international fraud? Escala is now Spectrum Group Int’l (SPGZ.PK), with operations in coin dealing, bullion trading and auctions. Spectrum Group seems to have put the past troubles behind it, but can’t seem to turn a profit. Guess those inflated stamp revenues are sorely missed.