Friday, July 27, 2018

The Intelligent Investing Podcast

I had the pleasure of being on the Intelligent Investing Podcast with Eric Schleien. This was the first time I've ever done a podcast and it was a lot of fun. Maybe we'll do some more in the future.  You can tell how nervous I was when I welcomed Eric to his own show...

Check it out here: intelligentinvesting.podbean.com

Monday, July 16, 2018

VII Becomes VCON

On June 19, Vicon Industries closed at $0.36 and it had been pretty flat around $0.40 for over a year.  The next day the company put out a press release announcing failure to comply with NYSE listing requirements and on July 12 the company changed symbols from VII to VCON as they moved from the NYSE to the OTCQB stock exchange.  

With no other news the stock has dropped all the way to $0.16, a loss of 56%.  I want you to ask yourself if a stock exchange name is worth half the company.

Friday, June 15, 2018

COMX Buyout

A buyout announcement came out this morning for COMX to be acquired by Zonal Hospitality Systems for 7.46 GPB = $9.91.  Shares are available now under $9 for anyone wanting to play the arb game.  I picked up more shares right at market open.

I first wrote about COMX in Apr 2016 with the stock at $1.60 and gave it a $6 value.  I gave COMX a $10 value in my most recent post in Feb 2018, what a guess!

Wednesday, June 13, 2018

HAUP Hides in the Darkness

There are various shades in the land of dark companies.  The brightest have de-registered from the SEC to save money and care enough about their shareholders to continue communication through their own website or otcmarkets.com.  Some companies lie in grayish middle ground where they will release info to shareholders only when asked.  The darkest of the dark don't  care about the stock price or wellbeing of any shareholder.  They hide in the shadows and communicate nothing.

Hauppauge Digital, Inc (HAUP) is one of the bad ones.  Their CFO, Jerry, told me they have de-registered and do not have to communicate.  I reminded him he is breaking state law by refusing to give financial information to a shareholder.  He uses the SEC as a scapegoat, claiming it will violate fair disclosure rules to send information to only one shareholder.  This is a gross misinterpretation and makes clear he does not care about us.

Still I hold shares and think the stock is likely cheap.  They recently put out the first press release in years.  They have redone their website.  As you can imagine the stock has dropped into the toilet and Jerry could care less.  I think the market cap is about a half million and I'd wager revenue is way higher than that.  This one is a gamble.

Thursday, April 26, 2018

CNGA Comes Back to the Light

Conair Corp (CNGA) de-registered from the SEC in 1995 and completely disappeared.  They did not file reports anywhere.  The stock sank to the bottom while shareholders wondered if the company was even alive.  CNGA stayed in the darkness for 22 years until filing quarterlies and an annual in Sept 2017.  Since then they have kept up with reporting and even put out press releases!  This is a major change of heart and where there's change there is opportunity, so let's investigate.

Wednesday, April 18, 2018

NoName Annual Performance 2017-2018

Another amazing year! I'm up 75.7% and that pushes my CAGR up to 41.3% since I started investing 5 years ago. I don't know how long this will last.

Monday, April 9, 2018

SLGD Continues to be Cheap

I caught Scott's Liquid Gold (SLGD) a few years after the ugly potential turnaround phase and since I bought in two years ago it has always been cheap but not cheap enough to write about.  So this post will be a bit different from my usual.  Here we have real earnings and real growth.  This is not a company on its deathbed I'm betting will scrape by.

Revenue has been growing at about 20% over the past 5 years while earnings has gone from nothing to $0.38 a share.  The stock is at $3.35 giving a P/E of 8.8, P/S of 1, and P/B of 1.9.  I'm surprised the stock isn't closer to $5.

Wednesday, February 21, 2018

Take a Bite of This PEYE

Sorry I can only say 'cheap' in so many blog titles before I revert to puns.

Precision Optics (PEYE) is small, cheap, and illiquid.  The stock is boring and the price is low.  Market cap is only $5M.  They are in the exciting field of medical device optics.  How could I not be interested?!

Stock price = business value + perception 

Tuesday, February 13, 2018

The Dark and Cashy Trio of ADDC, COMX, SIMA

Let me give you update on ADDC, COMX, and SIMA.  I don't know who else is talking about these stocks and the companies don't communicate with the public so if I don't give out their numbers the world will never know.  I have these three filed under "maybe they'll do something with the cash someday."

Other than updated numbers I don't have much to add to my previous posts: ADDC, COMX, SIMA.  If you want any reports just send me an email.

Friday, January 26, 2018

MGTC: Cheap with a Side of Dark

Megatech (MGTC) is another in my line of super cheap yet unfortunately dark companies.  It's also very illiquid so good luck on that front.  This will be a quick post because there's not much to the story: real company, real dark, real hard to get info... and real cheap.

Currently trading at 10% of book.

***
Update 1/27/2017: How funny. I published this post last night then this morning MGTC sent the latest financials. I've updated the numbers with 2016 data.
***