bluebare (60.74)

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#1) On August 06, 2010 at 9:45 PM, bluebare (60.74) wrote:

Well, shoot.  I was totally wrong about that. I was expecting a .03 EPS beat based on strong company guidance and they delivered a .07 miss.  Oops.  Now, looking to get back in under $7.50.  I'll definitely give this one another shot from a lower level if it gets down there.

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#2) On August 19, 2010 at 4:37 PM, bluebare (60.74) wrote:

Well, I'm back in at $7.37. 

While RRST could decline further still due to general economic weakness or a couple of dimes worth of specific valuation concerns, nearly 40% worth of downside risk has been priced into this dividend-paying CAPS 5-star stock since it topped out over $12 on consistently solid numbers in March. 

Worth looking at again at this level, IMHO.

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#3) On September 23, 2010 at 6:37 PM, bluebare (60.74) wrote:

Update. RRST bottomed out at a 52-week low of $7.02 on 8/24/2010, five days after and 3 1/2 dimes below my purchase price on 8/19.  Since then it's mounted a slow, unremarkable march up to today's close of $8.17, well above the 52-week low, eight dimes above my purchase price, for an unrealized  gain of over 10% in just over one month. I hope to be holding it a quite a while longer, though. RRST is still 50% below that $12 target and it's still worth a look IMHO. 

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#4) On September 23, 2010 at 7:10 PM, blesto (< 20) wrote:

Interesting company.

Major Holders:

% of Shares Held by All Insider and 5% Owners:74%

% of Shares Held by Institutional & Mutual Fund Owners:5%

% of Float Held by Institutional & Mutual Fund Owners:19%

Number of Institutions Holding Shares:12

Can't seem to find out exactly who those insiders are.

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#5) On September 23, 2010 at 11:16 PM, bluebare (60.74) wrote:

Excellent DD, blesto. You're right on the money. This is not a day trader stock. The many insiders and funds who own this seem to like it a lot and hold on to their shares. In an RRST universe of 17M shares, while it was hitting 5-year lows, fewer than 200K shares were traded during its recent two-week sub-8 run. Hardly the panic sell-off one might expect given the extreme conditions.  Suggests to me there's lots of patient owners with lot of confidence in this company who aren't going to be parting with their shares at 8 yesterday or tomorrow. I'm happy that I scored a few of the sub-8ers.

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#6) On October 14, 2010 at 12:45 PM, bluebare (60.74) wrote:

I closed out RRST at $8.55 today for a modest 15+% two-month gain.  Looking ahead and assuming continued hard asset appreciation due to dollar devaluation, I wanted to get some Lithium ETF (LIT) on board in case things blow sky high. I still love RRST but it was the best trade I had to raise the  capital I needed to get LIT.  Goodbye for now old friend.

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#7) On December 29, 2010 at 8:40 PM, bluebare (60.74) wrote:

RRST had a second disappointing quarterly report after affirmed guidance in a row.  It bottomed out at 6.70 two weeks ago and has since mounted an impressive climb to 7.75.  Having been misled by public statements by management two quarters running, I'm not impressed enough to re-up at this price. I still like the company's industry, business plan and future prospects but I'm watching for RRST to double dip and test the $6.70 bottom before making another run at its historic values in the $10-12 range or higher in the coming year.  True blue RRST insider fanatisies are to crack $15 and push on to $20 SOME day preferably next year. However, for now, my 1Q11 fair value is around $7, especially if there's a correction. Given this stock's loyal following and narrow float, a realistic new target BUY is slightly below that $7 a share price, IMHO.

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#8) On October 31, 2011 at 8:56 PM, bluebare (60.74) wrote:

Eleven months later...I still love RRST. 

Since December 2010, I've WATCHED the stock bleed off another $1.65 a share from that December 2010 "bottom" of 6.70 mostly due to a dismal 1Q report (.05 vs..17 EPS) in 2010 that negatively skewed the investment metrics of the company and will continue to weigh in for another two quarters.  The 2Q report in August was fine (.12 EPS) and showed the company to be getting back on track, a positive trend which clear guidance says--yet again-- will continue in the 3Q (.12 EPS again) coming out in eight days.

If that forecast holds, short-term I expect RRST to move to $6.20 or so in the next six weeks unless the broader market holds it down. Long-term, as indicated above, this company has a proven ability to deliver a .25 EPS and a stock price well north of $10.  The details of how they're going to get there again are entirely understandable and realistic if you take time to read them.

Today, RRST hit another 52-week (and FIVE YEAR!) low of $5.05.  Since I've taken it on myself to be the resident RRST Fool, I'm obliged to report that I believe a good BUY LOW entry point presents itself right here and now before the clearly-guided positive 3Q report comes out on November 9.  After eleven months of patient waiting, I'm personally back in with a small starter stake as of last Friday. As always, don't trust me and do your own DD before making investment decisions.  Good luck! 

 

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