About February 2005 Performance
"To the extent we have been successful, it is because we concentrated on identifying one-foot hurdles that we could step over rather than because we acquired any ability to clear seven-footers." - Warren Buffett
We kept our winning streak alive in February with another month of outperformance. The StockJock research list returned 2.8% for the month of February eclipsing the 1.76% return for the S&P 500. Results were lead by our short call on NVEC which dropped 26.9% as our analyst saw through the chip maker's hype. PARL put in another strong month, up an additional 11.5% and is now up 200% from where we launched on it last year. Our price target and rating on both PARL and NVEC are under review in light of this month's strong performance. HAMP, launched on February 4th with a BUY, also put in a strong month, up 8.3%.
As always, there were some disappointments. We dropped coverage of HGGR, but not before it dropped 15.9% on us. LINK was also down 15.9% on a negative preannouncement. Our analyst has downgraded LINK to HOLD following the news. The last big loser was ISNS which dropped 11.9% giving back much of last year's gains. In our opinion, ISNS remains attractively valued. Its results were exactly in line with our estimates and we remain a strong believer in the story viewing the pullback as another buying opportunity.
We launched on two new companies in February, Hampshire Group, Ltd. (HAMP) at the beginning of the month, and Amrep Corp. (AXR) at the end of the month, both with BUY ratings. Hampshire is a manufacture of apparel, especially sweaters, and Amrep has two subsidiaries, one in Real estate and another in magazine subscription fulfillment.
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