It has been a horrible six months for the DCVP, and for me too.
I have seen my portfolio get absolutely decimated, losing more than 50%, as the overall market, remained as giddy as ever. I have been forced to sell over 1/2 of my Luby's stake, due to nasty margin calls. In fact, it is so bad, that 60% of my components are sitting at new 52 week lows. Will the carnage ever end? At this point, I am unsure, as my confidence level has been widdled down, to less than sea level.
here is the list in all its glory
Luby's (NYSE:LUB): talk about torture. The shares continue to hit uncharted 52 week lows, and now are just 6 cents away from their 8 year low of $3.30, in the midst of the stock market crash, of March of 2009. Its market cap is now sub $100 million, while its real estate value is north of that amount. Mr. Market seems to be pricing in the worse case scenario-that Luby's will never be able to recover from its red ink. We need an activist investor to jump in and make things whole again. Where is Whitney Tilson, Mario Gabelli or David Einhorn when you need them? Will the Board renew the CEO's employment contract in three months? Of course they will- they essentially work for him. Will Chris and Harris Pappas make a tender offer for the 65% of the company they do not already own? taking it private at such a low price is logical, as financing it will be much easier.
Westport Fuel Systems (NASDAQ:WPRT); we are now at 95 cents and in jeopardy of being delisted. Why not institute a reverse stock split to correct this matter? NASDAQ rules require a stock to be delisted if its bid is below $1.00 for 90 consecutive trading days. Fourth quarter results are due out next month, but can't we get some guidance before then? The company's all out effort, in its launch of its HPDI 2.0 is slated to begin shipping to its OEM customer in 2017, but when? Management promised to provide 2017 guidance, but they have failed to do so. Is it possible they want the company's shares to zero out, so they can take it private in BK proceedings? It is pure insanity to note that just 9 months ago, they were essentially paid to acquire FSYS. They captured $70 million of cash from FSYS's balance sheet, by simply swapping the FSYS shareholders cash for WPRT's worthless shares.
SuperValu (NYSE:SVU) don't even get me started. this crummy stock can do nothing consistent, other than to make new 52 week lows.
Bridgford Foods (NASDAQ:BRID) turned in a spectacular 1st quarter report card. Sales up 14%, earnings up 29% and cash up 80%. These guys also received zoning approval to turn their Chicago meat processing plant into a prime commercial real estate location, slated for a 350 unit residential tower, and retail space across the street. They have entered into escrow to purchase a replacement plant in Chicago.
Coffee Holdings Company (NASDAQ:JVA): first quarter results will be out in less than ten days, and their current low bar (sales of $18 million and earnings of 6 cents) should be more than easy, to clear. The coffee purveyor also made a nifty acquisition when it purchased the Harmony Bay brand, in its acquisition of Comfort Foods, in an all cash transaction.. This acquisition will essentially allow JVA the opportunity to double their roasting/packaging operations, as well as picking up some 1000 new retail locations in the process.
Disclosure: I am/we are long LUB,JVA,BRID,SVU AND WPRT.