Taylor Frigon Capital Management exited its position in Cogent Communications Holdings, selling 73,271 shares worth $2.81 million in the fourth quarter. SEC filing on January 23 showed complete stake sale, reducing holdings by 73,271 shares. Top holdings post-exit include ALAB, CRDO, MDB, MPWR, and TSEM. Cogent’s share price at $24.29 on January 23 dropped 65.4% over the year, underperforming S&P 500.

Cogent Communications Holdings provides internet access, network services, and data center colocation globally. The company focuses on recurring service revenue and has 54 data centers. Cogent’s revenue comes mainly from connectivity and network solutions, catering to small and medium-sized businesses, communication service providers, and enterprises needing high-capacity data connectivity.

Portfolio exit from Cogent reflects a mismatch between investor demands and the fund’s tolerance. The company’s latest results showed progress in some areas, like wavelength revenue and EBITDA growth. However, core service revenue slipped, operating cash flow remained thin, and stock performance declined by 65% over the past year. Strong networks don’t guarantee strong stocks when capital needs are high and cash conversion lags.

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Read more at Yahoo Finance: After a 65% Slide, One Fund Clears Out This Internet Infrastructure Stock Entirely