Monday, December 28, 2015

WPCS undergoes major restructuring

WPCS International (WPCS) has been in a death spiral for the last decade, falling from around $2000 per share in 2010 to around $1.50 now (split adjusted).  That is about 99.9% of the market cap lost.  Amazing.

I suppose there's two ways to look at that chart.  One view is of a falling knife to avoid.  The other view is of opportunity. 

Monday, November 23, 2015

The (possible) turnaround of FORD

How do you know if a turnaround will turn?  I know there's a Buffett quote about most not turning but some do, and when they do the investor who bought when things looked bad stands to make a lot of money.  Sometimes there may be some pretty good signs one way or the other but many times you are just not sure. Sometimes the best you can do, if you want to invest in this space, is look at the incentives and possibility then give them a chance.  Does the company have a clean share structure?  Do they have assets they could sell if need be?  Is management invested?  Is the whole industry dieing?  How's the debt?  

I'm sure many who read this will call it a falling knife and that's fine. It has been falling but there are positive signs as well. We'll see how it works out.

So let's talk about Forward Industries (FORD).  

Friday, October 16, 2015

Growth at CVV

CVD Corporation (CVV) is a $76M market cap company that manufactures equipment and delivers process solutions for various coatings.  They help take research products to production and sell coating equipment.  A few descriptions from their most recent 10-K:

Friday, October 2, 2015

QDLC at 1x earnings*

Let's say there was a company with the following stats:

What would you pay for this company?  Maybe 10x EPS = $1.60 per share?  If the growth stretched over a longer period of time then maybe 15x EPS = $2.40?  Higher?

What if I told you the company was trading at $0.20 for a PE multiple of 1.25?  P/S = 0.13.  Cheap.

Tuesday, August 11, 2015

Hemacare's transformation

A better investor than I told me about this company.  Hemacare (HEMA) is a $3.5M market cap company that has transformed their business in the darkness, outside the view of Wall Street.  HEMA started life decades ago as a blood bank.  Realizing the limitations of that business, leadership started down a new path several years ago.  They have refocused the company and are experiencing strong growth in the bioresearch space.  They are valued as if they are dying and herein lies the opportunity.  The investment community does not know of their transformation...yet...

Friday, July 17, 2015

A conspiracy theory for GLGI and AB

Up front disclosure: While this post has some basis in fact, it is largely speculation

So here I am writing about GLGI again.  I told myself two posts was enough because I don't want to be the blogger who constantly writes about the same thing...but I just think about GLGI too much and what's more fun on a Friday afternoon than speculating about your stocks?  I have done a lot of sleuth work trying to figure out what is going on between GLGI and AB so at least this is an opportunity for me to organize it all in one place.

Saturday, July 11, 2015

IEHC FY15 10-K update

IEHC filed their 10-k yesterday so I thought I'd put out a little update.  In short it was great and they are continuing down their path.  The record high backlog disclosed in Sept 2014 has increased even higher and earnings is at an all time high as well.  The most interesting thing, to me, is that they have granted some stock options.

Some highlights:

  • Backlog at an all time high of $8.7M up 48% YOY
  • EPS at an all time high of $0.79 up 25% YOY
  • Trading at a P/E of 7.7
  • Concentration on military continues to shrink
And lowlights:
  • Despite record net income of $1.8M they actually ended the year with $12k less in the bank than last year
And items that could be interpreted good or bad:
  • Inventory raw material is up 79% YOY to an all time high

Tuesday, May 19, 2015

The Growth of IEHC

IEH Corporation (IEHC) is a $14M market cap company that makes electrical connectors.  They have been written up a few times by OTC Adventures here and Whopper Investments here, here, and here.  Bull, Bear and Value has a number of posts here including a write up on his trip to the annual meeting.  I recommend you start by reading those posts and then I will just add a little bit on top.  Let's begin with a summary and some bullet points from these prior posts.

The company was founded by Louis Offerman in 1937 and is now run by Michael Offerman who owns 40% of the company.  The CEO's son, David Offerman, is VP of Sales and Marketing.

Thursday, May 7, 2015

Why is TIK so cheap?

Tel-Instrument Electronics (TIK) is extremely undervalued based on the most recent quarter, pre-announced next quarter, and order backlog.  Let's take a deeper look to see if it's still cheap.

TIK is a high growth microcap company that designs and manufactures avionics test equipment.  Their largest customer is the US military, accounting for 89% of the most recent quarter's revenue.  TIK has three major programs:  CRAFT for the Navy, TS-4530A for the Army, and ITATS for the Navy.  The TS-4530A program is split up in two parts: SETS which are a complete new units and KITS which are an upgrade of an old unit.  The CRAFT project also has two parts: the 708 product and the 719 which is a subset.  I will let you visit the TIK website to learn more about these products but basically they are Mode 5 avionics test equipment.  Mode 5 is the latest standard that the US Military is migrating to as we speak; in the past there was Mode 1, 2, 3, etc.  TIK has only one competitor in the Mode 5 space, Aeroflex, but TIK has the upper hand since they have all the big U.S. government contracts.

Thursday, April 30, 2015

NoName Annual Performance 2014-2015

I bought my first stock on Apr 18, 2013 so my fiscal year begins with that date.  I manage the retirement funds for myself and my wife which are being contributed to every month.  My benchmark is the S&P500 ETF SPY.

I have two goals:
  1. Achieve an average annual return of 12% from now until retirement around 2037.  Annual return is defined by the geometric mean.
  2. Beat the benchmark.

Monday, April 27, 2015

Insiders Can't Get Enough of Greystone Logistics (GLGI)

I posted a follow up GLGI article on Seeking Alpha in January 2015.

Greystone Logistics - GLGI - An Introduction

I posted this writeup first on the forum in July 2014

Greystone Logistics (GLGI) is a highly levered nano cap company that recycles plastic and manufactures plastic pallets.  The company grinds up post-industrial and post-consumer plastic, combines that into their proprietary blend, and manufactures pallets. William Kruger was first named CEO in 2003 and he is intimately intertwined with everything.  There are many related party transactions involving Kruger and fellow board member Robert Rosene.  Rosene and Kruger have loaned money to the company, allowed the company to push back money repayments, personally guaranteed company loans, and used other companies they own to lease land and equipment to back to Greystone.  As of the latest 10-K, Kruger owns 30.6% of the common, Rosene owns 16.6%, and another board member Larry LeBarre owns 4.6%.