Comments on: IGOI: Should I stay or should IGO?

By: The Value of Unconventional Investment Research | Reaction Radio

The Value of Unconventional Investment Research | Reaction Radio — Mon, 19 Oct 2009 12:03:37 +0000

[...] I mentioned in my earlier post I recently read One Up On Wall Street : How To Use What You Already Know To Make Money In The [...]

By: Unconventional Investment Research Techniques and Tools | Compounding Life

Unconventional Investment Research Techniques and Tools | Compounding Life — Mon, 19 Oct 2009 08:33:44 +0000

[...] Compounding Life The thoughts of a personal investor « IGOI: Should I stay or should IGO? [...]

By: Old School Value Investment Portfolio: SEP 2009

Old School Value Investment Portfolio: SEP 2009 — Fri, 02 Oct 2009 21:29:48 +0000

[...] wireless stores. As an owner of a netbook, I know how popular these little computers are. Ken from Compounding Life wrote some good thoughts on why he sold [...]

By: Best Value Investing Articles

Best Value Investing Articles — Sat, 26 Sep 2009 05:50:29 +0000

[...] IGOI: Should I stay or should IGO? [...]

By: Ken

Ken — Sat, 26 Sep 2009 05:43:19 +0000

Good points Jae. I agree that if a net net investment seems to have potential as an on going concern then one should reassess the situation to see if the intrinsic value has changed.

In my case what I saw when I reassessed the situation is that IGO has seen the last of the Targus revenue and they are now venturing into uncharted waters with new products and technology. Some of the near term questions are, can the web site sales and netbook adapter sales make up for the lost targus revenue? Will the vampire power strips take off before larger competitors have a similar product? There is a lot of uncertainty there.

The vampire power strips are very interesting and the IP behind them is interesting as a potential source of value. However I found it hard to imagine that they could make a product that Belkin or another huge company could not imitate and Belkin already has a product addressing that need, albeit inferior in features. True they have patents but analyzing patents is out of my circle of competence. It seems like they have had a hard time marketing and reaching customers on their own and while it sounds like they are trying to change that I am not confident enough in their ability to turn it around.

It will be interesting to see how the netbook adapters sell. If they is an indication that they are selling like hotcakes and the price happens to come back down to $1 or less I will take another look for sure.

I also have one other small piece of IGO research that is not all that ground breaking but somewhat interesting that I will publish in a later post.
Ken´s last blog ..IGOI: Should I stay or should IGO?

By: Jae Jun

Jae Jun — Sat, 26 Sep 2009 05:20:14 +0000

Interesting post and research Ken.

I do agree that power supplies are a commodity. I bought a Targus one on sale a while back and realised that it was actually an IGOI product.

Lost the tip to my home computer though…

Also I’ve been considering selling as well but if there is news that a company will be able to increase sales and gain traction, do you reassess the company to update the intrinsic value based on the new scenario?

What I’ve realised is that value investors sell way too early. IGOI won’t be a 10 bagger but I’m thinking of a strategy where I use trailing stops once it goes beyond my sell price. If it keeps running up, let it go but if it drops below the stop, it sells.
Jae Jun´s last blog ..What’s going on at OSV