Thursday, March 16, 2017

STRI at 22% of Cash

Here is a simple one.  STR Holdings (STRI) is a solar panel encapsulant manufacturer currently selling for 22% of cash, 11% of BV, and 34% of the cash left after paying off all liabilities.  It's a classic net-net.   The stock has been in a death spiral but the chart shows it has found support around $0.15 over the past year.

That's it. Cheap numbers, all time low, chart support. Potential upside vs downside.

The problem is cash burn with a negative operating margin and decreasing revenue.  If you're into quality businesses with a moat this is not for you. If you believe turnarounds don't turn move on.

Tuesday, February 28, 2017

Biomerica is a Buy

Biomerica (BMRA) is a small developer of medical test equipment. They are working on FDA approval of their new product, InFoods, and describe it as a “multi billion dollar market opportunity.” With a market cap of $22M BMRA is in for big things if all goes as planned.

Tuesday, February 21, 2017

EKCS Update: Turning the Corner

I first wrote about Electronic Control Security (EKCS) in Aug 2016: EKCS has big potential.  Since then the company has produced 2016 financial statements, given me a quick 2017 projection, and announced a couple more contracts.  EKCS now has a market cap of $400k with revenue set to more than double in 2017.  My thesis is the same it was when I first wrote about EKCS, but they are further into a turnaround than I thought.

I've talked with the CEO by phone and email several times since my first blog post.  The company is doing well and I'd like to give an update

Thursday, January 12, 2017

IOMT: Market Cap Less Than a Gallon of Gas

The current market cap on Isomet Corp (IOMT) is $2.10.  As in two dollars and ten cents.  Not share cap.  Comically cheap.  If "nano cap" refers to companies valued less than $50M, what would you call this?  Spend one commission and get a company for free.

Friday, January 6, 2017

Will QDLC Ever Post a Report?

Quadlogic Controls (QDLC) is a dark company I first wrote about a year ago.  They last posted a report in 2012, earning $0.16 for the year.  Stock price is now $0.40 for a PE ratio of 2.5.  The only numbers anyone has seen out of QDLC from 2000 until now is the 2012 report.

Update 1/6/2017: QDLC updated the investor relations page of the website and posted an annual report for 2013!  They did this sometime between last night when I finished typing this post and this morning 2 hours after I published it.  

The company tells me they'll be posting an audited annual report within the next month and a half.  The question is will they follow through...

Tuesday, January 3, 2017

ADDC is Getting Cheaper

We got the Addmaster (ADDC) annual report in December and I went to the annual meeting.  It was a good year.  With another million in the bank and some talk of a tender I think this stock is worth twice the current price.

Monday, November 28, 2016

SOFT Has Big Plans

SofTech (SOFT) is an extremely low float nano cap in the middle of big change.  Five years ago they completed a recapitalization and have been selling off divisions while moving into a new business line.  In October shareholders approved the sale of their PLM business for $3.25M and with a market cap of $800k the public is not impressed with what's left.   Shockingly this is a blog post about an actual SEC reporting company... :)

Tuesday, November 8, 2016

COMX and SIMA Updated Numbers

I received new COMX and SIMA annual reports recently.  Both stocks are incredibly cheap.  Let me update you on the numbers.

Thursday, October 27, 2016

A Conversation With OTC Markets

Recently I mailed a letter and copy of my blog post Brokerage Firms, OTC Markets, and Dark Companies to the CEO of OTC Markets (OTCM).  I explained the issues I have with OTCM's stop designation list and told him I'd like to talk about how we can come to a resolution.  Thankfully he took me up on the request and we had a phone call the other day. It was great to hear another point of view and I just wanted to do a follow up post to get out their side of the story.

Tuesday, October 4, 2016

Brokerage Firms, OTC Markets, and Dark Companies

Followers of this blog know I've had issues with brokerage companies due to the types of companies I own. I have contacted 40 brokerage companies in the past 6 months in an attempt to find one who'll give me the freedom I want. In this post I discuss findings.

Tuesday, September 27, 2016

SIMA is the cheapest stock I know

I love 10 minute stock decisions.  Today's question is are you into incredibly cheap, dark stocks or are you not.  Let's start with a game of price that stock.  You tell me what it's worth:
  • revenue: $20M in 2015 vs $20.4M in 2014 vs $20.4M in 2013
  • cash: $12.5M vs 10.6 vs 8.8
  • securities: $1M vs 0.7 vs 0.3
  • net income: $2.1M vs 2 vs 2.9
  • BV: $21.9M vs 19.8 vs 17.8
  • EPS: $0.62 vs 0.59 vs 0.85
  • no debt
  • 3.4M shares common
  • no preferred or warrants

Tuesday, September 6, 2016

OptionsHouse kicked me out

A few days ago OptionsHouse sent me the following in an email:
After a review of your account, OptionsHouse has determined we will be unable to service your account ending *** going forward.  Your account has been placed in liquidation only trading status, meaning existing positions can be closed out but no new positions can be established. Please make arrangements to transfer your account out of OptionsHouse within thirty (30) calendar days.
They went on to explain the ways I could withdraw cash or transfer my account.  My wife has an account and got the same email.  They give no explanation.  I have been a customer for years.  I am active.  Now I'm given 30 days, don't let the door hit you on the way out.  Why must I leave...we won't tell you.  

Thursday, August 18, 2016

EKCS has big potential

Electronic Control Security, Inc (EKCS) is a tiny entry control and perimeter security solution provider.  Arthur Barchenko, 83, founded the company in 1976 and is still CEO; he owns 47% of the company along with his wife.  With a market cap of ~$250k, this is a story of potential.

Tuesday, July 19, 2016

My Portfolio July 2016

I started this blog with the intention of posting an article about each stock purchase not long after I made it.  Well I have utterly failed.  I would love to blog more, not only for my readers but also myself.  I get to know, and remember, a company much better after writing so it's a big benefit to me personally to go through the blogging exercise.  Unfortunately life gets in the way.  I have a wife, kids, house, dog, full time job unrelated to stocks, '67 Firebird restoration a decade old, etc so I have to just accept my limitations. I've been averaging a little more than a post per month and that'll likely continue

This post is just going to be a list of my current portfolio.  I thought people out there might be interested.  I plan on writing posts on all of these stocks but who knows when I'll get to it.  I do have a post planned this week but 'planned' does not equal 'completed' so we'll see

Friday, June 24, 2016

MRCR update: very cheap and possibly becoming less dark

Quick update on Moro.  I first wrote about MRCR 5 months ago.  They are dark and cheap with an old CEO.  The value will be realized some day, question is when

Wednesday, June 15, 2016

HEMA is still cheap

It's now been about 10 months since my initial post on Hemacare (HEMA) so let's take a look at where we stand.  The company went dark to transform their business outside the public eye from a money losing blood bank into a growing bio research cell product supply company.  I thought (and still think) their plan is to file again with the SEC once they fully transition and show a couple years of good results.  My original investment was based on a two main points.

Wednesday, June 1, 2016

The SEC allows companies to go dark

There is a rule, Rule 12g, from the SEC which allows companies to deregister if they have less than 300 shareholders "of record".  A good background explanation can be found here.  If you invest in the microcap space this issue should concern you.  If you stay here long enough one of your companies will go dark and the stock price will tank and the company will tell you to go pound sand when you ask for a report...

Here is the SEC rule.  Rule 12g-4 allows a company to deregister if it has less than a certain number of shareholders.  That number is 1200 for a bank or 300 for other companies.

Tuesday, May 24, 2016

I missed Zoom's big move

I wrote this post from Sept 15 - 17, 2015 when ZMTP was trading at about $0.80.  I placed an order for ZMTP on Sept 11, 2015 for something like $0.75.  It was a limit order for maybe 5 cents below was I stupid.  I was trying to catch a low price rather than buying what I knew was cheap.  Costly mistake on my part but a good lesson to have.  When something fits just buy some then as time goes on you can try to get it cheaper.  Just as I finished my blog post ZMTP woke up and doubled then kept going higher, it now sits at $2.40 and I missed a triple.  I hold no shares.  I have had a limit order in off and on ever since but it has been fruitless.  I'm an idiot

Friday, April 22, 2016

COMX is as cheap as they come

Let's play 'value that company'.  Have a think about what you might pay for this:
  • cash $3M
  • total liabilities $2M
  • debt $750k
  • BV $6.3M
  • TBV $5.7M
  • 1.6M shares out
  • no preferred or warrants
  • revenue $10.3M
  • net income $1M 2015 vs $0.7M 2014 vs $0.4M 2013
  • EPS $0.62 vs $0.47 vs $0.24
  • catalyst:  Nothing.  Patience is your only hope here.  HA!

Tuesday, April 19, 2016

NoName Annual Performance 2015-2016

What a year it has been.  Ian Cassel of MicroCapClub has a quote which I just love, "Don’t compare yourself to others. Compare yourself to yourself two years ago."  It's hard not to compare to others in something as tangible as investing but I try and this quote really helps.  When I think back to myself as an investor 2 years ago I smile.  In the first year I made some good decisions and mixed in a lot of luck; I wonder if I'd still be doing this if that luck wasn't there.  Things can be fragile when beginning down a new path.