Chroma Investing

Value Investing for beginning & small time investors and the value investing strategies of Graham & Klarman

Solitron Devices (SODI) Update – 10Q filing

Time to update Solitron Devices (SODI). It is vital to update you assessment of company when they release new information. SODI has released a new 10Q. I purchased shares of SODI because they were a Net Net stock with Free Cash Flow growth possibilities.The News in the financials is not very exciting. But nothing bad either.

Dollar Cost Averaging (DCA) – Beginning Investor Terms

Dollar Cost averaging is one of those perennially stupid ideas like Efficient Market Theory, that is so dumb, that I wonder how anyone could buy into it. It is completely contrary to the logic of Value Investing. But my opinion aside, it is a popular idea among investmentadvisers, so good to know what it is.

80-20 Investing and Other Financial Heresies

I am slowly developing, over time, an investment method I call 80-20 Investing. Everyone knows the 80-20 rule. For any activity you spend 20% of your time to get 80% of the result. The converse is obviously also true. The last 80% of effort only yields a 20% result. I really don’t want to waste my time, so I am interested in maximum efficiency.

Qiao Xing Universal Telephone (XING) – Update – Is anything going on?

I am not big on updates on Portfolio stocks for no reason. A little over a month ago I said I was purchasing XING a Chinese Net Net Stock. I purchased the stock at $1.91/share and in the last five weeks the stock has risen to $2.73/share or about 42% increase. I am not complaining but I found myself asking, Why?

Altman Z score Redux – Covering your back side better

Altman Z score has been around since the 1960’s and I have posted about it previously. Originally it was set up and measured the risk of bankruptcy among manufacturing firms. It turns out that in subsequent studies it was found that the original Altman Z score might be under reporting bankruptcies among non-manufacturing firms. Altman Z may be a great tool but it must be used correctly.

Free Value and NCAV Screeners

Now this is my kind of deal. Jae Jun over at Old School Value has really pulled all the stops for the new year. He has posted new value screeners that he offers for free. Yeah, that’s right for Free. I have already checked out the free Net Net screener which he calls Ben Graham Screener and sure enough, not only does he turn up some old faithfuls I have found on other screens but some new names as well like Electronic Systems Technology (ELST).

Does Market Timing Work?

The first evidence I discovered that some form of Market Timing may work was when I read Jeremy Seigel’s weighty tome, Stocks for the Long Run. He used what is called the 200 day moving average of a stock to determine a buy and sell point for equities, with investment going back and forth from cash to equities.

MNDO – Mind C.T.I. Why you must mind the details

I was reviewing a stock, Mind C.T.I. Ltd (MNDO), because it came across a screener as a Net Net opportunity. I wondered why it had so recently turned up.

MNDO is an Israeli company that, “a leading provider of convergent end-to-end billing and customer care product based solutions for service providers as well as telecom expense management (call management) solutions.”

Is the Stock Market Fairly Valued?

In this vein, I had heard that Buffett had some metric for valuing the over all stock market, but I couldn’t seem to locate it. Thanks to the people at Gurufocus ( I really should get a commission for mentioning them so much). Gurufocus described that metric in their article Where are We With Market Valuations. So here it is: Total Market Cap/GNP. And according to Gurufocus the stock market is fairly valued.

Happy New Year!

No lists, No profound thoughts, just good wishes for a profitable and terrific New Year.

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