Walter Lu, manager of the Covestor model Flexible Value, added the gaming company GigaMedia Ltd (NASDAQ:GIGM) to his value focused model. The company’s gross profit and operating income declined in 2009 as did their total assets and stockholder equity. During the beginning of July the company announced that it would begin public operations of online poker gaming systems in France. This may usher in an opportunity for improved revenues for the company.
The Capital Appreciation Plus model, managed by Emory Redd of Schenley Park Capital Management, gained ProShares UltraShort S&P 500 ETF (SDS) this week. Redd’s model seeks capital appreciation (as the name suggests) with positions that are less volatile than the S&P 500. SDS is an inverse ETF that attempts to mirror 200% of the inverse of the S&P 500 index. It is often used as a hedge when investors are bearish about the S&P. As of the date of this post it is trading at a small premium to NAV.
Redd also added another ETF– iShares Dow Jones US Telecommunications Index Fund (IYZ). This fund is designed to mirror the performance of the Dow Jones U.S. Select Telecommunications Index. As a result, 90% of the underlying assets match those of the index itself. Like SDS, IYZ was trading at a premium to NAV the day this post was written.
