I seek stocks at the bottom: fallen and forgotten. Company problems and perception issues push them down with eventual convergence to a single question: will they survive?
I've told this story before with TCCO. Bad news and poor results drive the stock down. Investors get fed up or bored and sell out at any cost. It's understandable because who wants to hold half dead crap no one has ever heard of?
I like to go where others won't. Results will only be different if the inputs or process are different.
Look at this long term chart of BDRL. The stock is at a bottom. Those highs of the 90's showcase the possibilities and highlight upside vs downside. What if they recapture the magic. What if the new leadership punches that magic ticket and the product shift takes hold. This is what's always running through my mind. What if...
- 13.3m shares outstanding
- market cap $1.6m with latest stock price $0.12
- book value $2.4m
- TTM revenue $15.8m
- TTM net income -$0.65m
- without PPP loan forgiveness stuff this would be closer to -$3m
"the Company secured two rounds of senior subordinated convertible debt financing, resulting in $1,000,000 of additional capital. These investments came primarily from members of our Board of Directors and senior management team"
"Beginning in mid-2019 the Company began a series of changes to our organization, expenses and structure, in an effort to improve our cost-efficiencies and reduce operating expenses, while concurrently preserving our ability to implement our strategic plan and operate our U.S.-based manufacturing functions"
"In January 2020, the Company began implementing a strategic plan to improve operating results and increase shareholder value. This plan consists of:
○ Adapting operating expenses in line with expected revenue and income levels
○ Focusing R&D on short-term high confidence opportunities with compelling ROI
○ Expanding sales and marketing efforts directly to service operators
○ Streamlining manufacturing operations and simplifying product offerings, and
○ Increasing gross margins."