Focus Value model manager Analytic Investment attempts to take advantage of equity mispricing opportunities led by market inefficiency. To do so, Analytic Investment utilizes computer algorithms that compute the relative value of all stocks based on their fundamental factors.
Last week, they added several new positions to the model, including Alliance Fiber Optic Products Inc (NASDAQ: AFOP). Over the past few years the company’s stockholder equity has been increasing, rising from $42.9 million in 2007 to $47.96 million in 2008 to $48.94 million in 2009. Their stock price has been rising since AFOP’s 1:5 stock split in August. AFOP closed at $7.92 on August 30th after the split. On November 5th the closing price was $11.00.
Another position added to the model was Easylink Services International Corp (NASDAQ: ESIC). Their shareholder equity dropped from $60.6 million in 2008 to $57.2 million in 2009, but then rose to $66.7 million in 2010. Their outstanding shares also rose, from 25 million in 2008 to 26.3 million in 2009 to 29.3 million in 2010. After closing at $2.58 on October 1st, ESIC eventually began gaining in price, until closing at $3.86 on November 5th.
Finally, Analytic Investment added UFP Technologies Inc (NASDAQ: UFPT) to Focus Value. UFPT’s shareholder equity has been increasing over the past few years. In 2007, it was $24.2 million. In 2008 it rose to $31.4 million then rose again in 2009 to $38.5 million. Their stock price has fallen since October. On October 1st it had a closing price of $12.49. On November 5th it had a closing price of $11.44.
*All prices used in this post obtained from Yahoo! Finance.
