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Follow Up - Leading-edge mobile companies: Buy Yoc, Sell Augme Technologies

|Includes:Hipcricket, Inc. (HIPPQ)

Since writing this article in late January, Yoc has increased 20%. Much of this gain has been reduced by a 15% rise in Augme (AUGT.OB) stock. Augme is clearly overvalued even on projected numbers. One of the reasons that our Fund shorted Augme, however, was its low cash balance, which in a downturn, would have quickly brought this stock down to Earth. In February, however, Augme raised $9M, which gives them some downside protection for now. Also, it appears Augme's sequential growth is rising, as purported backlog has increased from $20M a few months ago, to $30M. While this backlog requires further investigation, the company clearly has some operating momentum. The risk-reward of our Augme short position today has become less attractive, so we covered this short position in our Quan Technology Fund. We continue to maintain our long position in Yoc.

Stocks: HIPPQ