Tuesday, April 19, 2022

QDLC Finally Comes Through

I first wrote up QDLC in 2015 with the stock at $0.20.  It was dark and low, forgotten by the market.  

The other day a merger was announced for $2 per share.  Unfortunately I can't buy more as the stock is on the Expert Market and I don't have an account that allows buys there.  Let's close the book on this one.

When I first bought into QDLC, they had not filed a report in several years.  The stock was clearly cheap versus their outdated numbers.  But one had to wonder if we'd ever hear from them again and would anybody care.  

I try to buy what is cheap and left for dead then wait.  Watching while doing nothing is a large part of my strategy.  The trick is watching closely, following the news, looking for that change which may indicate prosperity is on the way.  

In 2017 a shareholder group started a proxy battle.  Fed up with the poor stock performance they wanted to force change.  Their goal was sell off the company piece by piece and reward shareholders for years of patience.  At the time they thought it may take a couple years.  This is exactly the type of change I hope for.

Quadlogic illustrates two big points of my strategy: patience and position sizing.  

I think one of my biggest edges is my patience.  I will hold stocks for years through good and bad as long as I see potential for a big win in the future.  Long term charts show the way while patience and optimism light the path.  

I own 50-60 stocks at any given time and I try to spread them out because I don't know which will really work out.  This is how I try to capture all the opportunity I see but as my portfolio grows larger it can be harder to make the wins matter and that is the case with QDLC.  You see I was right about QDLC.  More than once I told people that QDLC is the type of stock you will wake up one day and it has jumped a couple hundred percent.  But in the end this win will not move my portfolio because I did not own enough of it.  

Over the years I bought more QDLC as news went well.  In 2017 when the concerned shareholders started a proxy battle I bought more.  I bought again in 2019 as the company won a lawsuit worth twice the market cap.  Problem is I sold most of my QDLC in 2020 to buy a house.  It was just bad luck the QDLC was in my taxable account which I was liquidating first and then I feel asleep at the wheel.  

One thing I do often is look through my portfolio and check the position sizes.  I try to bump up those that are too small but it's difficult since often times they're not in a range I want to buy more and I don't always have cash to invest.  Certainly I need to do a better job with this.  

Below you can see the journey.  On to the next one!


disclosure: long QDLC

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