Monday, August 30, 2021
Saturday, July 31, 2021
Now that the SEC followed through with their rule 15c2-11 change blocking quotes from non-reporting companies, the brokerages are all backing away. I don't know if the SEC realized this would happen but it seems like every online brokerage company's response is to just take their ball and go home.
In recent weeks we've seen announcements from Schwab, TDAmeritrade, and others saying they will not allow clients to purchase non-reporting stocks after August 2021. Unfortunately I don't know of a single online brokerage that will let you buy dark stocks after the rule change goes into effect in Sept 2021.
I was a guest on The Investor's Roundtable the other day to discuss this topic. You can hear the audio here and watch video here. Give it a listen to hear my own opinion as well as some others I really respect. I have to say it was a real trip to be on a panel with my hero Dave Waters of OTC Adventures / Alluvial Capital.
Sunday, July 18, 2021
A couple weeks ago the company put out a tender offer to buy out all sharesholders at $10 (oddballstocks wrote up a nice summary here).
Saturday, May 29, 2021
There are many different situations in my portfolio and they all have one theme in common: potential. I'm here for the potential to change my life.
Pieris Pharmaceuticals (PIRS) is a "clinical-stage biotechnology company that discovers and develops Anticalin-based drugs to target validated disease pathways in unique and transformative ways". Agreements with a number of huge companies give PIRS total potential milestone payments of over 30x the current market cap, plus royalties! Sound interesting?
Sunday, April 18, 2021
Thursday, April 8, 2021
I did most of my PGNT buying a year ago and with the stock up over 200% I'm still adding. This one may keep going so let's take a look.
It's been a while since we played our favorite game, Price That Stock! Here we go. No looking at the stock price before playing. Humor me
Thursday, March 11, 2021
I recorded a fun podcast yesterday with Gary Ribe and Eric Furey, In the Market Trenches. I had a great time talking about my approach, how I do things, and why I do things. We did a little deep dive into two strange, yet somehow normal in the dark space, stock stories: EKCS and VCON.
Monday, February 8, 2021
For all my negativity and rants towards companies de-registering from the SEC, sometimes it does help operations. It definitely saves them money and enables them to spend more time on the business.
The real risk is communication. If they cut the world off the stock can drop to nothing but as long as they keep talking good things can happen.
Dynasil (DYSL) de-registered from the SEC in the fall of 2019 with the hope of saving $900k per year. They filed their last 10k in Dec 2019 and told shareholders to only expect an annual report moving forward. A week ago they put out the report and the numbers back up their motivation for de-registering.
Friday, December 4, 2020
In 2011, the "development stage" Harbor BioSciences HRBR lost 3.8M which was an improvement over the $6.6M lost in 2010 and $15.6M lost in 2009. Not pretty and with a market cap of only $6.5M, not inspiring. Amun LLC came along with a cash infusion of $2.8M to save the day if only shareholders will approve the following conditions:
- must perform reverse/forward split to get below 300 shareholder cutoff for de-registration
- must file to de-register from the SEC
- must give 3 board seats to Amun
- must approve a provision to preserve Net Operating Losses (NOLs)
- money will be forfeited if "At any time following the Deregistration, the Company makes any filing with the Securities and Exchange Commission (“ SEC ”) pursuant to Sections 13 and 15(d) of the Exchange Act on a voluntary basis"
Wow. Amun wanted the NOLs and to disappear. The transaction was approved and HRBR stopped communicating after putting out one last 10k in Jan 2012.
After 8 years of muted darkness Harbor Diversified (HRBR) put out an 8k in Apr 2020 with one of my favorite lines ever:
as of January 1, 2020, which is the first day of the Company’s current fiscal year, the Company determined it no longer met the eligibility criteria under Rule 12h-3 of the Exchange Act to suspend its reporting obligations under Section 15(d) of the Exchange Act. As a result, the Company determined it is required to file the Annual Report
Shareholders made them file again! So amazing and here's an article. I don't know the details but it seems they were taken to court and forced to come back to the light. Whoever did this is my hero. They've since put out a 10k showing $69M cash, $78M book value, and $263M annual revenue. They earned $4.2M in the latest 10Q. The market cap is currently $12M...sound interesting?
Thursday, November 5, 2020
A couple days ago I was a guest on the Avoiding the Crowd podcast with Maj Soueidan of GeoInvesting. It was a ton of fun! We talked about a lot of stocks I own and my process and the otc/dark space. Great talking with someone who knows all these little stocks.
Monday, September 7, 2020
I like to buy the forgotten, lonely, and broken then sell the exuberant and frothy. As a once treasured stock tarnishes the masses move on to the next shiny toy, leaving destruction in their wake. That's when I get excited. I try to find what has been tossed aside, knowing that if the sun hits just right the sparkle may bring them back.
Chembio Diagnostics, Inc (CEMI) is a medical diagnostic test developer. On Mar 16, 2020 the stock closed at $2.36, it's lowest point in 9 years. Four days later CEMI announced a $4M order for a COVID-19 test. Eleven days after that CEMI launched their DPP COVID-19 test, triggering the highest volume day ever. The stock peaked at $15.89 a month later.
Alas it was not meant to be as the FDA rejected their test on June 17 and the stock instantly gapped down from $10 to $4. What a change of heart.
CEMI is not giving up. On July 6 they announced a US FDA contract to develop a COVID point-of-care antigen system. They also announced they are revising the system and will seek EUA approval from the FDA for their system. The question is what happens if they get that FDA clearance.
Tuesday, June 9, 2020
Tuesday, April 28, 2020
To anyone out there considering writing, please do. Jump in full force. I have improved more than I ever thought possible and so much is due to writing this blog. It has improved my process, my speed, and my understanding.
I appreciate everyone reading this. Love the comments and emails. Thank you so much. This blog lights up my heart
Saturday, April 18, 2020
You can read more on my performance in past annual posts here.
Thursday, February 27, 2020
It was a lot of fun. We talked about my investment process, dark stocks, low liquidity, etc. Dove in a little bit on our old friend SIMA.
Saturday, February 15, 2020
Monday, January 6, 2020
The story now is much the same. We have a small company struggling to stay alive and I'm still waiting for the turnaround. I read every filing with excitement. "Maybe today is the day" I tell myself. They closed operations in China. They are leaving India. The Malaysian facility was sold. They started into a new business in Europe while cutting costs to keep the lights on.
I stick around for the potential amongst the carnage. Three weeks ago they announced the sale of their old Malaysian facility was completed for over twice the market cap. A $5M per quarter contract was announced which would be a 300% increase!