Even though we hate selling stock during major market corrections, we still decided to exit from our remaining position in WWWW following the company’s earnings announcement this morning.

After having waited for nearly a year and half for our investment thesis on WWWW to play out, we think it’s time to book our, now small, profit here and move on.

Today’s report has proven to us that the management team here has little to offer in terms of sustainable and profitable growth strategies. Interestingly, management seems more focused on strategizing about the company’s huge tax loss carryforwards, rather than on improving the bottom-line. Ironically, continued losses keep adding to the value of the company’s NOL’s, but of course minority shareholders will never benefit from this asset under the current management team.

As we have stated in the past, we don’t see much downside in WWWW’s stock given the company’s low relative valuation, but we also fail to see any upside scenario either. With the stock market sell-off gaining steam, there are now plenty of other investment options to consider, which have a more favorable risk/reward profile.