This year I'm down 0.9%, dropping my CAGR to 29.8% since I first bought a stock 12 years ago. I've been flat for 4 years now and lost to the market 5 years in a row which is too bad. You can see the ups and down of penny stock land in my portfolio performance even: 3 years matching the market, 4 absolutely scorchers, 5 years of ho-hum.
You can read all my past annual performance posts here.
Below is my portfolio
I haven't done anything with stocks for months. The constant stream of horrible news out of our new president has just been overwhelming. Lies every day. Taking away as many human rights as he can. No concern for due process. A political party based on exclusion, hatred, and corruption. Trump is trying to become a dictator and it seems we're not very far from that.
The main theme behind my investment style is long term optimism. It's difficult to be optimistic right now. In stocks I've been doing a whole lot of nothing. In life I'm going to protests and volunteering with local charities. Talking with my kids, wife, and therapist. I tried connecting with a couple Trump supporting family members and that did not go well.
On to some charts
MRCR
This is one of the highlights. The cash generation has been incredible the past 5 years. I've written about this one a number of times over the years and they've just been performing. New management took over when the founder passed in 2019. They've closed unprofitable divisions and the results speak for themself. Even as the stock has moved up, this has stayed as cheap as ever thanks to the company's performance.
PGNT
This one is my largest holding as you can see above. It's just so cheap. The stock sits at $7.83. Book value is $12.68. They earned $0.54 in Q4 alone which would be a PE of 3.6.
The story on this one though is drama with the former chairman Sham Gad. I wrote all about it last fall. Since that writeup the company has named new directors with Tim Eriksen of Solitron fame being the single piece of news I'm most excited about.
Now there is a proxy battle which will likely come down to the few large shareholders. In my opinion, Sham is a horrible investor and we've seen that for many years. I hope shareholders vote against Sham for all the reasons I wrote about in November 2024. He's just bad.
SPRS
This one I've written up recently and all that's happened is it got cheaper. The stock sits at $2.15. $3.51 book value with $2.27 cash. TTM EPS of $0.18. I don't get it.
Dan
--disclosure: long everything in my portfolio screenshot
its always good to see some companies like MRCR shoot the lights out every year. Keep up the great work!
ReplyDeleteCongrats Dan. Wish you the best in the coming years
ReplyDeleteCongratulations on your track record. Your blog is much appreciated! I share concerns about what is happening in the country, and less importantly, how it might affect our investments.
ReplyDeleteThanks for the excellent update. you are probably the only Micro cap investor who didnt disappear or bankrupt in the last few years (Most Microcaps Blogs or Twitter heroes died). All small cap world is lagging for the past 11 years so hopfully it will be back if Trump will not bankrupt USA before and Rates and regulation will come down.
ReplyDeleteSPRS is mainly China and its not hot at the moment and I wonder hiw they hold up nicley with the tariffs of China.
Thanks yeah so many blogs are gone. Actually yesterday was my 10 year blogging anniversary too.
DeleteCorrect about SPRS being dependent on china that's for sure. I feel like it's down too far for that concern
I think small stocks yield high returns if you sort out low-quality stocks. For example, low quality is associated with companies that make losses, do not generate cash flows, are not growing or have high levels of debt. If you extend the regions to all companies publishing in English (Singapore, South Africa, UK, Canada, possibly also Hong Kong), you will find quite a few such shares.
ReplyDeleteThanks all
ReplyDeleteVery good to hear from you again.
ReplyDeleteSPRS imports everything from Asia so I guess it will be losing money this year.
https://www.qcintel.com/carbon/article/dac-technology-firm-raises-15m-in-series-a-funding-39976.html
ReplyDeleteI thought this one was dead, maybe they are coming back to life. I can´t open the news. If someone could please explain if there is a survival chance for this company.
Thanks.
I think PGNT Q42024 was 0.34 $/share. 2024 was 0.64. And Q1+Q2+Q3 was -0.03, 0.04, 0.29
ReplyDelete