Smalltime Model Portfolio Update (9/12/2015)

Revolution Lighting (RVLT) has just secured the rights to bid on Department of Defense contracts. Robert LaPenta, The CEO of RVLT has created one company called L-3 communications (LLL), He bought 10 divisions of Lockheed Martin and made further acquisitions to build a large company geared toward supplying the defense industry. RVLT is in the LED lighting business and Mr. LaPenta is following the same model as LLL. He first bought Nexxus lighting in November of 2012 and has since bought at least 5 other lighting companies. The Department of defense is a place that Mr. LaPenta knows well and he is well known by the DoD in his own right. Mr. LaPenta and his team also hold 57% of the outstanding shares. I'm sticking with this company for the long haul.

Capstone Turbine (CPST) I said from the start that this company and it's products are all about the future 5-10 years out. I am waiting for the costs to come down on the product and am also anticipating new products like a grid-scale turbine for large power plants. Capstone's products have had millions of hours of run time in the field and have proven themselves as reliable. There are many applications for the turbines and they will begin to bear fruit for the company in the coming years. I'm holding here too.

Frontier Communications (FTR) This is the only dividend payer in the portfolio currently earning $21 per year in income. I like this company because it has built out a rural network that is valuable to a larger company who may want to own the network. High speed internet is expanding and Frontier is a big player in the space. Wish I had bought more shares and traded off the peak at over $8, but I still like holding this one for a few years.

Anadigics (ANAD) This is the dog of the portfolio and it has suffered an amazing fall. I knew that this was a turnaround play and that it was a big risk. I still like the fact that the company has no long term debt and the products it makes for the RFID and WIFI infrastructure markets are in demand and will continue to be for years. I'll go down with this ship or I'll sell for a tax loss but I'm compelled to hang around at least into the first quarter of 2016 to see if they can get this thing turned around.

Metallico (MEA) This company makes lots of money, but there are loads of long term debt here. I bought this company expecting a rebound in base metals prices. What I got was an oil price crash dragging the base metals along with it. I did buy more shares @ 34 cents and it is now at 59 cents. I am still way down as I bought in near $2. This company could be bought but I hope not. I'll stay around for 2016 or until we get swallowed up by a bigger fish. Metallico has been bought for 60 cents a share. I will receive $120 for my 200 shares.

Patience is what it takes to endure heavy downturns in the stock price. I am investing in companies, not stock prices. I know that I am an amateur investor and I cannot know what professionals and insiders know, but with money that came from the trash, I believe it is worth a shot.