Portfolio Update

Radisys (NASDAQ: RSYS)
As you all know I have owned this stock for a long long time. This is my second time around so search older posts for my writings. I am more positive about the direction its heading after yesterday's earnings call.
Recently I wrote that a large shareholder had joined the board and for me this is a positive catalyst. If you recall the shareholder felt RSYS could do a number of things such as offer a dividend or look for acquisitions with a nice cash position its been building.

Notes from RSYS earnings announcement:

• Earnings beat expectations
• Announced an ACQUISITION of Continuous Computing
• Named a new CEO, who has a strong track record

There were a number of very positive things from the most recent earnings call. RSYS margins have been average at best, around roughly 30%, and the acquisition allowed them to get a company with higher margins, around 50%. This also brings new customers in a fast growing sector (3G & 4G wireless infrastructure). I also took the news that the company achieved ITAR compliance and allows for further growth in the military and defense market. The other two items that were positive are 1) the adding of business or a business partner in China and 2) a CEO with experience leading a high growth company that was taken over


Artificial Life (ALIF, ALIFE)
This stock has had a strange run. It is your VERY high risk, potentially high reward stock. This stock plunged when they dropped their accounting firm (like a bad habit). They were punished as I and investors feared that another company could be potentially cooking the books. It didn't help when a law firm stated they would be suing ALIFE for misleading investors. This stock easily dropped over 50% but you can't panic. In a matter of a few weeks the company has hired new and reputable accountants (BDO), challenged the lawsuit, and just today the lawsuit by the legal firm was rescinded. This turn of events has caused the stock to rebound from a low of $33c and now running up to $62c.