Dumping ANH

As mentioned on Friday, ANH's 2Q08 cashflow report was a little on the disappointing side. The company failed to build on the momentum of the first quarter when they posted their first pre-tax profit.

Last year ANH acquired a company called Webfirm and at that time noted that Webfirm was expected to contribute $1m pre tax profit to the company's results. Based on the latest quarterly report, that suggests that the rest of the business is doing a little worse than break even.

That puts greater uncertainty over the earnings capacity of the company and thus it's valuation. With that in mind I decided to unload my parcel of ANH shares and realize a quick 20% profit. That's a handy return in just one week however it has more to do with good timing than good stock picking.

I'll continue to monitor the progress of the company, however in the absence of clear evidence that the company is able to grow profits I will be looking elsewhere to make long term investments.