We expect management to further beef up and emphasize Pivot, which could result in substantially higher prices. Jacobson Stores demonstrates that the market is not entirely oblivious to value. We recommended the stock because it was selling at a small fraction of asset value and an earnings turnaround was likely. In the usually slow third fiscal quarter, sales were flat because of store remodeling, but margins improved considerably. The company lost 29 cents a share versus 43 cents.
Indications are good for the key winter months, and there is more room on the upside .
Dot Hill is our one disappointment among the Doubler candidates. After jumping up, the stock has settled back into its base area. Those are speculative premises, but the downside is limited by the very cheap price and Dot Hill s substantial cash resources. Accumulate near current levels. Last issue we suggested eight of our stocks as candidates for rebounds during the traditional year-end and January rallies.