Follow-up (2) Technical Communications Corporation (NASDAQ:TCCO)

As you might remember, I sold my TCCO position a few weeks back after some sloppy research (link to that post). The day after I managed to correct my misstake when the share price of the company for some reason plummeted back to former levels. See link to post for that re-purchase: checklist-analysis.

Yesterday a fellow net-net investor alerted me on Twitter saying that something again was going on with TCCO with the shares skyrocketing +25%. This time I conducted a proper research investigation but found no news or indications validating the big share price increase. I therefore concluded that TCCO again was exposed to a pump and dump scheme by traders and that the safety vale for a follow-up was valid. The follow-up resulted in a sale of my position at a price of 2,95 USD since the company was then trading at P/NCAV>1. In relation to my purchase price of 2,40 USD that translated into a return of 22,6 % (net of currency effect and brokerage fees).

Today the shares of TCCO, as many times before, plummeted back to former levels and I managed to re-purchase my position at a price of 2,35 USD. Since no new Q-report has been published since my last checklist-analysis I will refer to this post for validating my re-purchase: checklist-analysis Q3 2016 TCCO.

Disclosure: The author is long NASDAQ:TCCO when this analysis is published.


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