It's time to make our second buy of Knology (KNOL) , the cable, voice and data company we added to the model portfolio on Friday. The stock has pulled back 15% since we bought 500 shares, and we want to buy another 500 shares here with the stock trading at $4.19.
As we said Friday, after reworking some of its credit facilities, the company has the flexibility to build its business and expand its service platform to include advanced digital and higher EBITDA services in its key Florida markets. We now have 1,000 shares and will wait for another pullback before stepping in and buying more.
Elsewhere in the portfolio, SonicWall (SNWL) is up to $6.75 a share today as JP Morgan came out this morning and said the company should hit its numbers this quarter. We continue to believe this stock will trade back toward $8 a share and won't look to sell any part of our 800-share stake until the stock is trading meaningfully over $7 a share.
David Peltier and William Gabrielski, writers ofTheStreet.com Stocks Under $10, are research associatesat TheStreet.com.
Mr. Peltier is a contributor to TheStreet.com Save Safe Plan and maintains the model portfolio for that product.
TheStreet.com is a publisher and a registered investment adviser. TheStreet.com Stocks Under $10 contains the authors' own opinions, and none of the information contained therein constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You further understand that Messrs. Peltier and Gabrielski will not advise you personally concerning the nature, potential, value or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. To the extent any of the information contained in TheStreet.com Stocks Under $10 may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.
Past results are not necessarily indicative of futureperformance. Investing in the stocks chosen forTheStreet.com Stocks Under $10 model portfolio is riskyand speculative. The companies may have limited operatinghistories and little available public information, and thestocks they issue may be volatile and illiquid. Trading insuch securities can result in immediate and substantial losses of the capital invested. You should use only risk capital, and not capital required for other purposes, such as retirement savings, student loans, mortgages or education. As editorial employees of TheStreet.com, Mr. Peltier and Mr. Gabrielski are restricted from owning individual securities other than stock or options in TheStreet.com, Inc.
-----------------------------------------------------------Visit the TheStreet.com Stocks Under $10 site (available to subscribers ONLY) by clicking here: http://www.thestreet.com/k/su/index.html
To view TheStreet.com Stocks Under $10 portfolio on theWeb, click here:http://www.thestreet.com/k/su/portfolio.html
For customer service on your account please visit:https://secure2.thestreet.com/cap/selfserve/
-----------------------------------------------------------
(c) 2004 TheStreet.com, Inc., 14 Wall Street, 15th Floor,New York, NY 10005, Attention: Customer Service Department