Rosetta Stone Inc (RST): Osmium Trims Stake in Its Top Pick, Plus Fund’s Other Top Holdings

Osmium’s second most valuable position at the end of the year was in Tucows Inc. (USA) (NASDAQ:TCX), a Toronto, Ontario-based provider of domain registration and reselling, which operates a number of different brands including OpenSRS, Hover, and Ting. Osmium had an $18.64 million stake in Tucows Inc. (USA) (NASDAQ:TCX) consisting of 962,300 shares, which was down by 60,800 shares from the previous quarter. Osmium was also the top investor in Tucows among funds we track, followed by Jim Simons’ Renaissance Technology with 615,100 shares.

Tucows Inc. (USA) (NASDAQ:TCX) closed out a very strong three-year run at the end of 2014, rising from $3.04 to $19.30 during that time, a 542% increase. Osmium has benefited from that run for the last two years, opening a position of 189,100 shares in the first quarter of 2013 and building that to just over 1.0 million shares by the end of the third quarter of the same year. Tucows Inc. (USA) (NASDAQ:TCX) is down slightly this year after missing fourth quarter earnings estimate. Earnings per Share (EPS) came in at $0.16, well below estimate of $0.21.

Osmium’s third pick was ePlus Inc. (NASDAQ:PLUS), with the fund holding 171,900 shares worth $13.01 million at the end of 2014, a decrease of 11% from the previous quarter. ePlus Inc. (NASDAQ:PLUS) is another stock in the midst of a terrific three-year run, up slightly more than 200% since the beginning of 2012. Another longtime shareholder of ePlus, Eric D. Hovde’s Hovde Capital, recently sold some more of its stake, taking profit from its lucrative investment.

Lewis has previously cited some of the positives he saw in ePlus Inc. (NASDAQ:PLUS). Among them are the company’s EBITDA margins of 7.2% compared to just 4% among its peers, and the opportunities for the company to grow, with nearly $300 million in cash and credit. A strong earnings report in February sent shares rising by 15%, as the company reported adjusted earnings of $1.64, which beat the estimate of $1.41.

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