Weekly Summary

This past week was murderous to my portfolio - though given the performance of the entire market, I don't think I'm alone in this predicament:


Given the way things are going in the overall market, I'm going to have to deviate from my general strategy of dumping a position when it falls below 50% of its original value. Otherwise, I'd be dumping about half of my portfolio: DEXI, FEEC, RAD, IVAN, and FRE.

The wise guys are saying that this is the time to buy, as you'll make a killing when the market recovers. While that sounds like good advice, they've been saying the same thing for the past month, and anyone who's done so is sorely regretting it.

I'm going to wait for a full week of positive movement before I get any deeper into the markets, and I'll hold onto what I've got in hopes of recovering some of what I have already lost.

Directed Electronics (DEIX)

Company:	Directed Electronics
Web Site:	http://www. polkaudio.com
Purchase Price:	$1.68
Current Price:	Click Here

Directed Electronics is an established manufacturer of mid-range home audio products and has been around for years, struggling to find its niche. Historically, its products were too expensive to attract a mass market, while their products were not up to the level demanded by audiophiles who pay a premium price for high-end equipment.

Recently, the company has come out with a line of accessories for the popular iPod music player that are being carried in Apple stores and discount retailers. The company has also been able to make a substantial reduction in its debt (in the proper way - with cash flow rather than equity).

The stock price has shown a slight upturn, and given the improvement in their capital structure and refocused product positioning, it could be the beginning of a significant uptrend.