Thursday, September 21, 2017

Major Change for SOFT, WPCS, MRCR

Tiny companies meander through life with peaks and valleys along the way.  These three stocks have all had major announcements recently which perfectly illustrate life in this unloved corner of the stock market.  Rather than the good, the bad, and the ugly I think we have the good, the bad, and the who knows.  

I like to buy tiny companies with potential.  Sometimes that potential turns into reality (as seems to be happening with MRCR), sometimes the potential gets replaced with other potential (WPCS), and sometimes the potential turns into a fire that burns the company to the ground (SOFT, maybe).  MRCR and WPCS are definitely actionable if you think there's value to be had while SOFT is so illiquid and uncertain it may not be. 

WPCS is a low voltage electrical contractor who recently announced they are merging with DropCar.  MRCR is a construction business that de-registered from the SEC in 2004 then filed reports with OTC Markets for a decade before disappearing from the public eye in 2014.  Just today MRCR posted reports to the public for the first time in 3 years and got removed from the dreaded OTC Markets Stop Designation List.  SOFT was selling off business lines a year ago to concentrate on a new high potential division...then a few days ago they put out an 8k announcing everything is for sale including their domain listing and NOLs.

Tuesday, September 19, 2017

An Interview with NoNameStocks

Jan Svenda interviewed me for his OTC Newsletter a couple of weeks ago.  It was a ton of fun and Jan was great.  He has authored many articles on Seeking Alpha and we have crossed paths on a few stocks.  This is the first and only interview I've ever done.

Today he released a cut down version of the interview on Seeking Alpha and I just thought I'd throw up a link here in case you're interested.

Thursday, September 14, 2017

DEWY: Real Estate, Change, and Survival

Dewey Electronics (DEWY) has annual revenue of about $6M and a BV of $2M. On top of that, their 22 acres of land and facilities has been appraised at $4.5M and completely depreciated. Next to their facilities they have another 68 acres of excess land whose sale for $18M fell through in 2005 due to restrictions put in place by New Jersey's Highlands Water Protection and Planning Act.  You get all that for a market cap of only $1.9M.

The company has recently changed their tune, stating the stock is undervalued and claiming they are working to correct the situation. An 18% shareholder joined the board a few months ago.

I love a tiny company reinventing itself and DEWY is doing just that as they diversify away from their decades long main product, a 2kW rugged military generator.