Chroma Investing

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

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.

Chroma Investing Portfolio One Month Update

Since this is a new blog we will feature the only time that we will do a one month portfolio review.

On August 4th 2009 the S&P closed at 1002.72. I purchased VaxGen (VXGN) for .54. Today the S&P closed at 1003.24 and VXGN closed at.61. That would be a 12.9% increase in one month for VXGN or an annualized rate of 155%. During the same time the S & P 500 gained less than .005%. For a relative gain to the S&P of 154%. Really! Likewise on August 17 the S&P closed at 979.73. I purchased the special situation stock of Zareba systems (ZRBA) for 3.80/share. At close today ZRBA sold at 4.08/share. 7.37 % in 17 days. The S&P 500 from Sept. 17 today is up 2.34%. ZRBA is up over 5% relative to the S&P 500 in the same period or over 100% annualized.

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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