Chroma Investing

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

ORXE – Ore Pharamceutical Holdings – NCAV pharma stock – Bought and Sold

On Tuesday I bought 1600 shares of ORXE, a Net Net pharma stock for $.30/share or $485.00 including the ChoiceTrade $5.00 commission, for the Small Investor Portfolio. I sold today at .40/share for a profit $150.00 or nearly 31% including commissions. This is not my usual trading style. But as much as this was a […]

Exit Zareba Systems (ZRBA) Special Situation for Small Timers

On Monday August 17th I opened a new position in Zareba Systems (ZRBA). It was what I consider a terrific investment for a small time investor. I bought 249 shares at $3.80 with commission my cost basis was $951.51. The plan was to wait until the reverse split and sell for $5.20/share. Yesterday, Zareba Systems decided not to go private,or more importantly to me, not do a reverse split. The wierd part is this where I am supposed to tell you how this kind of thing happens with microcaps. The price should have dropped today. But it didn’t. It went up, which is why I noticed that something was going on.

Spin offs – Good for Small Time Investors?

For the small time investor, or someone just beginning to invest for themselves, you have to remember to look to see where you have an advantage over other participants in the stock market. Odd lot purchases like the Zerba Systems (ZRBA) purchase are a good start. No mutual fund or hedge fund will waste their time with it, too small of a profit.

What other opportunities are there? The next type of special situation worth looking into are spin-offs. A spin off is when a company decides to split off a subsidiary or division and distribute the stock to its shareholders.

Special Situations – What are they?

Special Situations, or Workouts as Warren Buffett likes to call them are what they sound like, out of the ordinary situations for a stock that may be profitable to a savvy investor. Joel Greenblatt wrote You can be stock Market Genius, which specifically discusses special situations. Special situations include such tactics as buying spin-offs, securities in bankrupt companies, rights offerings, re-caps, odd lot purchases. Not all of these are appropriate for Beginning or small time investors or beginning investors. I will highlight a few of the special situations that are worth looking at over the next day or two.

ZRBA – A Special Situation for the Small Time Investor

Purchased 249 shares of ZRBA, a special situation that is well suited to small time investors.

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