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Stocks J / Jacada Limited


Subject:  lessons learned Date:  10/26/2000  4:42 PM
Author:  cjaeger Number:  38 of 49

I'm finishing up TMF Investment Guide. And seeking to backtest its 8 item checklist for a small cap growth stocks against my unFoolish portfolio.

Applying what I recall (w/o the book in front of me) against JCDA points out to some rules I should have followed...

If the stock doesn't have at least a 2 yr history avoid it. There's not enough data to judge the business mgmt team on.

Wait until they actually generate a positive cash flow and have positive net income > 15%. JCDA has a marginal gross profit and net income is actually a net loss or break even right now.

Beware of throwing good money after bad. I was in initially around the 30's and kept buying during its drop down to around 5. Now I've averaged out to about 18 and need a 200%+ rise for a break even.

Despite all these mistakes when deciding to buy way back when, I still think my $ is solid and I'm holding long (but not buying more). 1 yr after its IPO I see their revenue jumping, their EPS increasing, and long term debt decreasing.

Anyone have other fundamentals to comment on?
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