tag:blogger.com,1999:blog-7548942162079505922024-03-17T20:17:54.915-07:00NoNameStocksSearching for value in the obscureDan Schumhttp://www.blogger.com/profile/05728696891530868697noreply@blogger.comBlogger117125tag:blogger.com,1999:blog-754894216207950592.post-70309372612829550162024-02-28T10:21:00.000-08:002024-02-28T13:40:00.943-08:00Full Circle<p> I started down this path in the stock world when the startup I was working for went bankrupt in early 2013. At the time I had minimal savings to support my wife and two kids so we had to uproot and move to get a new job. </p><p>That experience is what pushed me to expand my financial horizon to end up here. If you want to hear more about my stock beginnings, I talk about it in some <a href="http://www.nonamestocks.com/search/label/Podcast">podcasts</a> <a href="https://intelligentinvesting.podbean.com/e/nonamestocks-interview-with-dan-schum/">here</a> and <a href="https://avoidingthecrowd.podbean.com/e/why-dark-stocks-have-been-a-bright-spot-for-dan-schum-investor-and-editor-of-nonamestocks/">here</a>.</p><p>Here I am 11 years later and yesterday my project was closed down. Deja vu. Turns out the world of new technology development has risk :) <span></span></p><a name='more'></a>Second time getting laid off but we are in a much better position than back then. Thanks to the stock world, my mentor, this blog, everyone who talks stocks with me, and all you readers we have a big enough cushion to say we are not moving. Unfortunately not big enough to retire but I don't have to start a new job within a few weeks like last time. No uprooting the now three children or my wife. We can take more time finding what's right and if it pays less we can supplement with stock savings money. The plan worked!<p></p><p>I'm grateful for all of you and this whole stock journey. I'm feeling pretty numb right now but it's time to be new. </p><p>Thanks to everyone reading this</p><p>--Dan</p><p>disclosure: long gratitude</p>Dan Schumhttp://www.blogger.com/profile/05728696891530868697noreply@blogger.com17tag:blogger.com,1999:blog-754894216207950592.post-28502693332455911762023-12-28T07:44:00.000-08:002023-12-29T07:54:05.511-08:00SPRS is Consistent, Profitable, and Cheap<p><a href="http://www.surgecomponents.com/">Surge Components</a> (<a href="https://www.otcmarkets.com/stock/SPRS/disclosure">SPRS</a>) is a rarety amongst my portfolio: well run and profitable. The stock sits at $2.40 giving a market cap of $13.7m. They have $10m in cash + securities, $40m TTM revenue, $2m TTM net income. </p><p>The board owns over half the company and acts intelligently. They build up cash and do the right things. In <a href="https://www.sec.gov/Archives/edgar/data/747540/000121390017010599/f10q0817_surgecomponents.htm">2017</a> they spent most of their cash buying back half the common in a tender at $1.43. Since then they've built it back up from $1.5m to $10m. </p><p>No drama with this one and no shady management. Even I stumble onto quality once in a while. <span></span></p><a name='more'></a>This story is a simple one: quality stock trading too cheap. Every time I look at this one I feel like I must be missing something because it just looks too good. I think the issue is it's a commodity business. From the <a href="https://www.otcmarkets.com/filing/html?id=16442770&guid=HEJ-kaPm869pJth">most recent 10k</a>: <br /><blockquote>We are a supplier of electronic products and components. These products include capacitors, which are electrical energy storage devices, and discrete components, such as semiconductor rectifiers, transistors and diodes, which are single function low power semiconductor products that are packaged alone as compared to integrated circuits such as microprocessors. The products that we sell are typically utilized in the electronic circuitry of diverse products, including, but not limited to, automobiles, telecomm, audio, cellular telephones, computers, consumer electronics, garage door openers, household appliances, power supplies and security equipment. The products that we sell are sold to both original equipment manufacturers, commonly referred to as OEMs, who incorporate them into their products, and to distributors of the lines of products we sell, who resell these products within their customer base.</blockquote><p>I don't know anything about the small electronics parts supply business. Maybe there are cycles. Maybe we'll hit a downturn. </p><p>But look at this performance (thank you <a href="http://rioc.ai">rioc.ai</a>):</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiJgDLqqNyEnTagOjjTNn6xhYwT_F08liRfujRlLZKVH9V-gTCnmdW6xcCLTFqgyF3I0i86rMwxwjTq9wC1LjWizUYDtb-HMi-AYVo69adZ89pHO3Y28cB5hSYy4CELJboerRpl1bFhw2WWTu6pjalGy4Lg_pldUQjVAkU3C1bBT93jPAoG6XJBY-AsC-Ef/s3360/Screenshot%202023-12-28%20at%207.06.03%E2%80%AFAM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="540" data-original-width="3360" height="102" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiJgDLqqNyEnTagOjjTNn6xhYwT_F08liRfujRlLZKVH9V-gTCnmdW6xcCLTFqgyF3I0i86rMwxwjTq9wC1LjWizUYDtb-HMi-AYVo69adZ89pHO3Y28cB5hSYy4CELJboerRpl1bFhw2WWTu6pjalGy4Lg_pldUQjVAkU3C1bBT93jPAoG6XJBY-AsC-Ef/w640-h102/Screenshot%202023-12-28%20at%207.06.03%E2%80%AFAM.png" width="640" /></a></div><br /><p>They've had really good numbers since covid as orders went through the roof. SPRS was able to deliver product during the supply chain issues. The stock is down recently since the numbers have cooled off and the company expects it will take some time to get their mojo back. </p><p>Some quotes from the most recent <a href="https://www.otcmarkets.com/filing/html?id=17039462&guid=HEJ-kaPm869pJth">presidents letter</a> and <a href="https://app.tikr.com/stock/transcript?cid=355182&tid=2943479&e=1861458378&ts=2973843&ref=g28zus">annual meeting</a> (thanks <a href="http://tikr.com">tikr.com</a>): </p><blockquote>I am happy to let you know that I made my first trip to Asia in August, to visit both customers and suppliers after four years, due to the pandemic. The meetings were positive with excellent opportunities for growth.</blockquote><blockquote>At the end of 2022 these customers ended the year with major excess inventory, which we believe will take four to six quarters for them to consume, before starting to order these products again. At the same time, the Company has achieved new business with both new and existing customers and continues to forge stronger and closer relationships with our customers. Surge is a major supplier for many customers, and we continue to broaden our global reach through our regional sales operations and our distribution channels. In Europe, we are successfully penetrating the market, utilizing our sales office in London. Concurrently, we are also growing our presence in Asia as we have employed a key sales manager in China. We plan to continue to hire additional sales talent in both Europe and Asia. </blockquote><blockquote><p>the company sees that it will probably take another 5 or 6 quarters, from what we could see at this moment, until customers have consumed that excess inventory and are ready to start ordering those same products again</p></blockquote><blockquote>cautiously optimistic about a gradual improvement throughout 2024 to rebound to the sales before '23 level</blockquote><blockquote>Steven and I, the executive management of the company, are cautiously optimistic that certainly by the end of 2024, we are looking forward to seeing a gradual improvement and that the sales will grow because the customers will start buying products again</blockquote><p>Here's a 10 year chart. You can see the tender at $1.43 in 2017 and the great numbers since covid. It dropped down as low as $1.52 yesterday for some reason. </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhZeyNk9hsJSh-zANdLd0SN0YBWAPK3gr1_yrhKi1pICvrXJYKIxoAyu8lv-uMnHTr744W-OtHfTqrYuhfJmX_cKs0Pge8Vxl0KSwprLWU8Ior_TA60m4b68H9op6T02uKIBmoVLc6Dn6CYyUyLLC2wR0JpV78UZZVrOdK8FbQqxUgruyE8Av7Ik2n8mA9j/s1174/Screenshot%202023-12-28%20at%207.22.53%E2%80%AFAM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="682" data-original-width="1174" height="233" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhZeyNk9hsJSh-zANdLd0SN0YBWAPK3gr1_yrhKi1pICvrXJYKIxoAyu8lv-uMnHTr744W-OtHfTqrYuhfJmX_cKs0Pge8Vxl0KSwprLWU8Ior_TA60m4b68H9op6T02uKIBmoVLc6Dn6CYyUyLLC2wR0JpV78UZZVrOdK8FbQqxUgruyE8Av7Ik2n8mA9j/w400-h233/Screenshot%202023-12-28%20at%207.22.53%E2%80%AFAM.png" width="400" /></a></div><br /><p>Numbers as of the <a href="https://www.otcmarkets.com/filing/html?id=16988494&guid=HEJ-kaPm869pJth">most recent Q</a>:</p><p></p><ul style="text-align: left;"><li>5.7m shares common</li><li>10000 shares preferred</li><ul><li>dividend $0.50 per share annually</li><li>non-voting</li><li>liquidation pref $50k</li><li>convertible to 10 shares common each</li></ul><li>$1.79 cash + securities per share</li><li>$3.33 book value per share</li><li>TTM rev $7.14 per share</li><ul><li>$1.60 most recent Q</li></ul><li>TTM EPS $0.36</li><ul><li>$0.02 most recent Q</li></ul></ul><div>I don't understand the preferred since it looks like the most tame preferred out there. It was issued in Nov 2000. Since it's non-voting with such a small liquidation preference and annual cost it doesn't impact much. </div><p></p><p>This stock is selling below book with 2/3rds of the market cap in cash + securities. Even if you annualize the most recent Q with lower sales the stock is at 0.4 times sales. The balance sheet is solid with only a lease as long term debt. That is too cheap.</p><p>Even with sales down 36% in the <a href="https://www.otcmarkets.com/filing/html?id=16988494&guid=HEJ-kaPm869pJth">most recent Q</a> they remained profitable. To me it's just a well run, quality company to hold on the cheap. Ira Levy and Steven Lubman have run the company since inception in 1981. <a href="https://www.otcmarkets.com/filing/html?id=17039462&guid=HEJ-kaPm869pJth">They own 18.4% and 19.9%</a> of the common, respectively, and are 67/68 years old. I hope they keep going for a couple more decades. </p><br /><br /><div>--Dan<br />disclosure: long SPRS</div><div><br /></div><div><br /></div><div><br />Subscribe to all NoNameStocks posts here: <a href="https://forms.feedblitz.com/erd">https://forms.feedblitz.com/erd</a></div><p></p>Dan Schumhttp://www.blogger.com/profile/05728696891530868697noreply@blogger.com16tag:blogger.com,1999:blog-754894216207950592.post-28150162681732092302023-12-05T20:45:00.000-08:002023-12-10T11:54:17.488-08:00SLGD is Becoming Something NewI <a href="http://www.nonamestocks.com/2018/04/slgd-continues-to-be-cheap.html">first wrote up</a> Scott's Liquid Gold, <a href="http://www.nonamestocks.com/search/label/SLGD">SLGD</a>, in 2018 at $3.35, at the peak of the 10 year chart. With the stock at $0.40 now that's looking like a big mistake. <div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgnLIpWG2e8xZ1jbn39IoldjdEYuBH_nV2f3NJ9uK7CfzMyahThPdQJODVkhvv-LtefLMRrzdOfHhVvGsrMXmInMg3lwyzZoy-MCOxA7bWDoveBaImv0bqFNYfujeoKP5Azn1AdqwPqidZBBllE0Cwdeb_edpYctSkgEb6Gw1y5UFGZy0Y41WJCrDCJ9xG1/s1170/Screenshot%202023-11-30%20at%207.28.39%E2%80%AFPM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="688" data-original-width="1170" height="235" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgnLIpWG2e8xZ1jbn39IoldjdEYuBH_nV2f3NJ9uK7CfzMyahThPdQJODVkhvv-LtefLMRrzdOfHhVvGsrMXmInMg3lwyzZoy-MCOxA7bWDoveBaImv0bqFNYfujeoKP5Azn1AdqwPqidZBBllE0Cwdeb_edpYctSkgEb6Gw1y5UFGZy0Y41WJCrDCJ9xG1/w400-h235/Screenshot%202023-11-30%20at%207.28.39%E2%80%AFPM.png" width="400" /></a></div><br />But one thing I like to do is hold for a long time and forever evaluate. I'm constantly reading press releases and filings. Checking over and thinking what might be next. I'll buy more when it makes sense and hold out for brighter days. Rarely do I sell.<span><a name='more'></a></span><br /><br /><div>Recently I made back almost all the money I had lost on MINM. That stock I first wrote about as <a href="http://www.nonamestocks.com/2016/05/i-missed-zooms-big-move.html">ZMTP in 2016</a>. I've held for years and bought a lot when Minim took over the company in early 2021. Look at the bloodbath that followed (note there was a 1-25 stock split this year so I was buying at more like $4 than $100). <br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhtSrmVvhkALiWfS-8BP37UaWBE3lyfnlHPABBmfuPORRkSa0OE3aId2zfOvxFszWqtETkqbM8rYjUTCUVDv88vjxOsxBcNMRDUzUj-kdJ29DzYEuiaLgJgnavDXCpCC00KapozfzwjL_qYbW0CUJ2ZycwKxne6Wb7lrJGBps7ICrMhVb-CRdh-b2mnjWEA/s1166/Screenshot%202023-12-05%20at%207.01.17%E2%80%AFPM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="680" data-original-width="1166" height="234" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhtSrmVvhkALiWfS-8BP37UaWBE3lyfnlHPABBmfuPORRkSa0OE3aId2zfOvxFszWqtETkqbM8rYjUTCUVDv88vjxOsxBcNMRDUzUj-kdJ29DzYEuiaLgJgnavDXCpCC00KapozfzwjL_qYbW0CUJ2ZycwKxne6Wb7lrJGBps7ICrMhVb-CRdh-b2mnjWEA/w400-h234/Screenshot%202023-12-05%20at%207.01.17%E2%80%AFPM.png" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div>It was my type of setup. Small unloved company with new management. Adding in software and AI products, targetting higher margins. New management had a great prior exit selling their <a href="https://www.businessinsider.com/dyn-from-dorm-room-to-north-of-600-million-2016-11">company Dyn</a> and I thought they could repeat. <br /><br />Sadly I was wrong and MINM turned into my largest dollar loss ever in 2022/2023. I had made it a large position and mistakenly bought the rising stock right at the top. I sold out in May 2023 in a spike that sent the stock up 10x in a day, taking the opportunity to show myself the door. Down ~90%. But I kept reading and following. The company is circling the drain and <a href="https://www.otcmarkets.com/filing/html?id=16894213&guid=5TJ-kqpiBsM4B3h">started talking</a> about the possibility of bankruptcy in August. <br /><br />I bought back in at ~$0.90 a couple months ago after they <a href="https://www.otcmarkets.com/filing/html?id=16983897&guid=5TJ-kqpiBsM4B3h">announced</a> a new investor was buying up a controlling stake for $2.4m which "would be used for the sole purpose of settling all of the Company’s and its subsidiaries’ liabilities". The market cap had dropped to $1.2m for a company doing ~$50m in revenue. Not a lot of details in the filing but hey if $2.4m gets control and paid off debt then I could take a flyer on some stock valued at half that. <br /><br />The stock quickly dropped into the $0.70s putting me down again but then it happened. Nov 29 after hours I saw some volume and thought I need to watch this tomorrow morning. I always check after hours and before market open, looking for activity. On Nov 30 something woke me up early at 5:30am. I remembered MINM and checked my phone. The stock was up 700% on insane volume! I ran down to my computer and sold most of my shares. After the open I sold the rest, missing the stop but what can you do. <div class="separator" style="clear: both;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEigaDmu43nHpF5BgRyMLTyOr8nLmhz6U_qRaPIw_ttjkE-w1OnanRDLZwotpZjDgGMMwbXwz0n6G4rqORXPG7lK9K3CTuzR9IhdzD1n5-EksGddFiuZ4su8jv9OihGKfQZh8uY46DGMWIXdJCBaPtJXM5pO2wPzl808VeUtra8qWx96IGc7QZv23DDpKfQB/s1516/Screenshot%202023-12-05%20at%207.31.45%E2%80%AFPM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1516" data-original-width="844" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEigaDmu43nHpF5BgRyMLTyOr8nLmhz6U_qRaPIw_ttjkE-w1OnanRDLZwotpZjDgGMMwbXwz0n6G4rqORXPG7lK9K3CTuzR9IhdzD1n5-EksGddFiuZ4su8jv9OihGKfQZh8uY46DGMWIXdJCBaPtJXM5pO2wPzl808VeUtra8qWx96IGc7QZv23DDpKfQB/w223-h400/Screenshot%202023-12-05%20at%207.31.45%E2%80%AFPM.png" width="223" /></a></div><div class="separator" style="clear: both;"><br /></div>Look at that volume on a stock with 1.4m shares outstanding! No news. In an instant I made back 90% of my MINM losses. This is why I continue following year after year, why I like a low share count, why optimism wins. You just never know. <br /><br />On SLGD I am pretty much breakeven at this point. I've held for many years, first buying in 2016 and holding through a near triple then adding during the decline. In mid 2022 the stock dropped under $0.50 and I've made it one of my largest positions between $0.20-$0.40. <br /><br />There is change afoot. In <a href="https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwiMmLmk9fmCAxV_IkQIHUSECNwQFnoECBgQAQ&url=https%3A%2F%2Fwww.businesswire.com%2Fnews%2Fhome%2F20210429005419%2Fen%2FMark-Goldstein-to-Retire-as-Scott%25E2%2580%2599s-Liquid-Gold-CEO-and-Chairman&usg=AOvVaw3-qRiOAQ7YCEifB5yVr1w5&opi=89978449">Apr 2021</a> the CEO since 1990 Mark Goldstein retired, leaving Dan Roller as the new chairperson of the board. In <a href="https://www.otcmarkets.com/filing/html?id=16013990&guid=0jX-kH8bvsE_B3h">Dec 2021</a><a href="#"></a> their distribution agreement with Church & Dwight Co expired without renewal and they sold the Dryel product line. They terminated China distribution in July 2022 and sold Prell in <a href="https://www.otcmarkets.com/filing/html?id=16524354&guid=uTm-kpxRYyuLh3h">Dec 2022</a>. In <a href="https://finance.yahoo.com/news/scott-liquid-gold-inc-announces-110500048.html">Jan 2023</a> they even sold the Scott's Liquid Gold product! In <a href="https://www.otcmarkets.com/filing/html?id=16781638&guid=yND-kHGQCb9mB3h">June 2023</a> they sold off Alpha skin care and BIZ, using the money to pay off loans. <br /><br />All this while Dan Roller of Maran Capital has been buying. Having been in the stock since 2020, he has averaged down heavily. He held 5.7% of the stock in the 2020 proxy then 12.8% in 2021, holding flat until recently. He got Goldstein's shares in <a href="https://www.otcmarkets.com/filing/html?id=16730246&guid=yND-kHGQCb9mB3h">June</a> for $0.33. He bought out another 5% shareholder in<a href="https://www.otcmarkets.com/filing/html?id=16801539&guid=xID-knsLJ3TsB3h"> July 2023</a> for $0.33. He now owns 41% at an avg price of $0.68. <div><br /></div><div><div>SLGD <a href="https://www.otcmarkets.com/filing/html?id=17036786&guid=5TJ-kqpiBsM4B3h">put out a 10Q</a> a month ago and I think all they have left is pets, doing ~$4m rev per year. Book value is $0.45 per share with $0.36 of that being straight cash. The division sales paid off all debt and I'm told Roller is trying to sub-lease to pay down their lease liability. Roller has turned the balance sheet into a strength. He's been selling off division after division over carrying value and I'd bet in a liquidation this gets $0.70 today. <br /><br />As we all know the question to ask is what does the future hold. We have major change happening with most of the business being sold off. New management in place and motivated since Roller is down 40% even still from current prices. <br /><br />The question is what will he do with it. He is trying to turn it into a win for himself and his investors. No dividends or distributions have come out. I think he'll try to buy up something new. Maybe a merger or acquisition. SLGD only has until Jan 23, 2024 to use the Scott's Liquid Gold name so something has to happen.<br /><br />The risk is Roller doesn't know what he's doing. I mean he is already down on this. Maybe he makes a bad acquisition or pays himself all the excess cash as compensation. So far he seems to be on the up-and-up but who knows. </div><div><br />For me I'm looking at the bright side. SLGD may be down but it's not out. New blood is pushing the company forward. Let's see where this leads. <br /><br /><br />--Dan<br />disclosure: long SLGD</div><div><br /></div><div><br /></div><div><br />Subscribe to all NoNameStocks posts here: <a href="https://forms.feedblitz.com/erd">https://forms.feedblitz.com/erd</a></div></div></div>Dan Schumhttp://www.blogger.com/profile/05728696891530868697noreply@blogger.com24tag:blogger.com,1999:blog-754894216207950592.post-6122442773776344462023-09-18T18:56:00.001-07:002024-02-28T13:23:58.279-08:00HAUP Courtroom Battle over DE State Law 220 Finally Done<p>We finally have <a href="http://www.nonamestocks.com/search/label/HAUP">HAUP</a> financials! It only took 8 state law DE 220 demand letters, almost 4 years in court, and hundreds of thousands of dollars in legal fees! </p><p>It went all the way to the Delaware supreme court if you can believe it, and they ruled in favor of the shareholder: a company must provide financials to a shareholder asking for them and importantly the company is not entitled to enforce an NDA. That's some great precedent!<br /><br />The HAUP CEO Ken Plotkin fought as hard as he could for years and I don't see why. As a wise man once asked, "Is he a crook or a person in a lousy business just trying to survive?". <br /><br />Check out these lines from Plotkin's own lawyer! <br /></p><blockquote>"the undersigned believes it incredible that the Company will abide by any future Order from this Court or our Supreme Court" </blockquote><blockquote>"it is not clear to the undersigned that the Company has any credible intentions of paying the Costs awarded to Mr. Rivest, let alone the outstanding balance owed to Counsel or the appellate retainer" </blockquote><blockquote>"The undersigned has advised the Company not to relocate to a different jurisdiction or attempt to move assets, for that may trigger issues sounding in fraudulent transfer. Despite that advice, it appears the Company is in the process of moving, without disclosing its address to the undersigned"</blockquote>Can you imagine?! Your lawyer walks into court and says he's not getting paid, the court won't be paid, his client won't do what you say, and the client is trying to skip town. Insane<p></p><span><a name='more'></a></span><p>But what you want are the numbers. That's what started this thing <a href="http://www.nonamestocks.com/2018/06/haup-hides-in-darkness.html">5 years ago</a>. Well <a href="https://drive.google.com/drive/folders/12Zl82yqmidSYRBcm3Qmjx8j524CyAlpV?usp=sharing">here they are</a>. In that link you'll find quarterly and annual numbers for 2016-2022. Balance sheet, income statement, cashflow. Unfortunately we didn't get any footnotes or other information. </p><p>Here's the 2022 vs 2021 summary</p><p></p><ul style="text-align: left;"><li>3.6m rev in 2022 vs 4.2m in 2021</li><li>net income $93k vs $63k</li><li>book value -11.8m vs -11.9m</li><li>10.9m shares out</li><li>plotkin owns ~10%</li><ul><li>and he's the company's only director </li></ul><li>stock price $0.0011</li><ul><li>market cap $12k</li></ul></ul>The market cap is twelve thousand dollars thanks to the <a href="http://www.nonamestocks.com/2021/07/brokerages-new-sec-rule-and-podcast.html">SEC killing dark stocks</a>. This company costs less than <a href="http://www.nonamestocks.com/2023/07/off-topic-firebird-is-done.html">my car</a>. About the price of a new roof. It's cheap if you can actually buy shares, though I wouldn't trust this management. Still I hold my shares, waiting for 'someday'. <p></p><p>But look at that book value. What do you think the $8.3m in "accrued expenses" and $5.7m in "accounts payable" means? I'd wager that's how Plotkin is paying himself and one reason he was fighting against releasing the numbers. Would be nice to have accompanying footnotes but alas we are left to guess amongst ourselves. </p><p>A timeline:</p><p></p><ul style="text-align: left;"><li><b>April 2018</b>: I first emailed the CFO Jerry to get financials. He <a href="http://www.nonamestocks.com/2018/06/haup-hides-in-darkness.html">gave horrible excuses</a>. </li><li><b>April 2018</b>: I sent a letter to the SEC and the Delaware State Department of Corporations. No response.</li><li><b>May 2018</b>: I <a href="http://www.nonamestocks.com/2018/06/haup-hides-in-darkness.html">sent a DE state law 220</a> demand letter to HAUP. No response.</li><li><b>June 2018</b>: I <a href="http://www.nonamestocks.com/2018/06/haup-hides-in-darkness.html">wrote up HAUP</a> on my blog</li><li><b>July 2018</b>: Another shareholder Eric Schleien who runs an investment management firm traveled to HAUP and talked to CFO in person. <a href="http://www.nonamestocks.com/2019/08/paging-all-haup-shareholders.html">CFO refused</a> to give financials. Eric files a complaint with the DE and NY secretaries of state.</li><li><b>Dec 2018</b>: Another shareholder C who runs a fund sends a DE state law 220 demand through his fund. No response.</li><li><b>Feb 2019</b>: A group of us pay a lawyer to send a DE state law 220 demand. CEO calls the lawyer back and gives Reg FD excuse. No financials.</li><li><b>June 2019</b>: Eric has his lawyer send a DE state law 220 demand, signed and notorized. No response. Lawyer says this is the first time in his career a company has completely ignored.</li><li><b>July 2019</b>: Jim Rivest sends a DE state law 220 demand letter. No response</li><li><b>Aug 2019: </b>I wrote a <a href="http://www.nonamestocks.com/2019/08/paging-all-haup-shareholders.html">second HAUP post</a> trying to round up shareholders to get more people behind our cause. I got up to 26% of the common with people I heard from but didn't end up doing any sort of proxy battle.</li><li><b>Oct 2019</b>: Jim's lawyer sends a DE state law 220 demand letter. No response</li><li><b>Oct 2019</b>: Jim files the action in the DE Court of Chancery seeking HAUP financials under DE state law 220. </li><li><b>Apr 2020</b>: HAUP hasn't responded so court finds default judgement in favor of Jim. </li><ul><li>Short lived hurray as the court receives a letter from Plotkin hours later. He responded a day after the deadline, with regular mail, and no lawyer. </li></ul><li><b>Apr 2020</b>: Jim sends another 220 demand letter for newer financials. No response.</li><li><b>June 2020</b>: HAUP files motion for relief from the default judgement. They've got a lawyer now.</li><li><b>Oct 2021</b>: Court trial held. One day trial in front of a Master.</li><li><b>Jan 2022</b>: Court Master issues report</li><ul><li>Ruling that HAUP must give financials and are entitled to 2 year NDA. </li><li>Company had sought indefinite restriction. Jim argued for none. Master decided on two years.</li></ul><li><b>Feb 2022</b>: Jim appeals the NDA decision which triggers a new Judge in the Court of Chancery to take a look at the case.</li><li><b>Sept 2022</b>: Jim files yet another 220 demand letter for newer financials since the process has taken so long</li><li><b>Sept 2022</b>: Court Judge Laster hands down opinion (see <a href="https://courts.delaware.gov/Opinions/Download.aspx?id=337340">here</a>) in favor of Jim. </li><ul><li>HAUP must give financials and there is no NDA required.</li></ul><li><b>Oct 2022</b>: HAUP appeals to DE Supreme Court but it's quickly rejected as the lower court action has not concluded yet</li><li><b>Nov 2022</b>: Judge Laster final ruling in favor of Jim</li><ul><li>HAUP must give financials. No NDA required. </li><li>Short article about the <a href="https://www.jdsupra.com/legalnews/chancery-rules-that-delisted-and-long-3294556/">decision here</a>. </li></ul><li><b>Dec 2022</b>: HAUP again appeals to DE Supreme Court and this time it's accepted for the court to look at.</li><li><b>Dec 2022</b>: HAUP lawyer says he wants out. Says he's not getting paid, doesn't think HAUP will comply with court orders, and they might be trying to skip town</li><ul><li>Soon after he said payment came but will only represent the company in a limited capacity</li></ul><li><b>Mar 2023</b>: Court of Chancery filing from Judge Lester telling HAUP and Plotkin personally they are going to be held in contempt and required to pay $500 per day for each day they do not produce the financials.</li><ul><li>Soon after the company finally sends Jim an income statement and balance sheet for 2016-2020. No cashflow, no quarterlies, no footnotes. </li></ul><li><b>Apr 2023</b>: Plotkin representing himself again. Claims the company lost their quarterlies.</li><li><b>May 2023</b>: Oral arguments for DE Supreme Court case. See <a href="https://courts.delaware.gov/supreme/oralarguments/download.aspx?id=4525">video here</a>. </li><li><b>May 2023</b>: HAUP held in contempt. Finally gives quarterlies for 2016-2020.</li><li><b>July 2023</b>: DE Supreme Court case completed. Rules in favor of Jim. Agreed with Judge Laster.</li><ul><li>HAUP must produce financials. Quarterly and annual. Balance sheet, income statement, cashflow statement. </li><li>No NDA required</li><li>HAUP is not 'private'</li><li>see the <a href="https://assets.law360news.com/1697000/1697841/hauppaugevrivest.pdf">ruling here</a></li><li>online <a href="https://www.law360.com/articles/1697841/delaware-justices-say-delisted-co-has-no-financial-privacy">article here</a> </li></ul><li><b>July 2023</b>: At long last all the quarterlies and annual numbers for 2016-2021 received. No footnotes </li></ul><div>Almost 4 years in court. Four different times I thought it was over. Like a bad TV drama it was filled with delays and appeals and missed deadlines galore. How can anything be this inefficient.</div><div><br /></div><div>On the one hand persistence and patience prevail. We got what we wanted and the right side won. </div><div><br /></div><div>But I no longer have any faith in the judicial system. Not that I have any experience but what the heck. It's a clear law, in DE a shareholder has a right to inspect the records of their company. First the company ignored it, then they claimed Jim didn't follow form or have a proper purpose. They delayed and ignored then delayed again. And for what consequence? The company paid the costs. Jim tried to get lawyer fees paid by HAUP and in Nov 2022, after 3 years of litigation, the court awarded Jim $3875!! That's chump change.</div><div><br /></div>One important point to come from the trial is this statement below. The next time a de-registered company tells you they aren't allowed to answer your questions due to Regulation FD you can just point them here. The Master says reg FD does not apply to them once they de-register from the SEC. See pg29 in the <a href="https://courts.delaware.gov/Opinions/Download.aspx?id=337340">court filing here</a>. <br /><blockquote>"Starting with Plotkin’s first letter to the Master, the Company relied on Regulation FD as a basis for resisting Rivest’s inspection request. Because the Company had deregistered, Regulation FD does not apply to the Company...Plotkin did not know that..."</blockquote>Again and again Plotkin tried to play the victim. He claimed Jim's lawyer "Mr Montejo has been insufferable during this litigation". When Jim filed a 220 for newer financials, due to Plotkin dragging out the simple request for years, Plotkin complained " Mr. Rivest will burden the Company (and this Court) with another Section 220 lawsuit, raising the same legal issues of confidentiality recycled in the most recent demand..." <div><br /></div><div>During the trial, Plotkin and Jerry said they have quarterlies but when it was time to produce Plotkin said they were lost. Shortly after they were magically found again when the court pressed hard enough. Disgusting.<br /><br />Plotkin had the gall to tell the court Jim should pay HAUP's fees! To quote his lawyer "Instead we see over-agression and a win-at-any-cost mentality. As this approach to litigation represents the worst of the practice of law, a counter-award of attorney fees, costs and expenses to defendent is warranted." OMG is all I can say to that. But when given the chance to scratch, claw, and lie without consequence guess what a jerk choses? <p>In the end the greatest accomplishment is the precedent set. HAUP tried to argue for an NDA, they tried to hide behind Regulation FD. When the SEC changed rules to <a href="http://www.nonamestocks.com/2021/07/brokerages-new-sec-rule-and-podcast.html">kill dark stocks</a> and bring in the expert market HAUP even tried to use that to their advantage. Plotkin and Jerry cried made up stories about lost business due to releasing financials. The courts were having none of it. </p><p>Thanks Jim</p><p><br /></p><p><br /></p><p>--Dan</p><p>disclosure: long HAUP</p>Subscribe to all NoNameStocks posts here: <a href="https://forms.feedblitz.com/erd">https://forms.feedblitz.com/erd</a></div><div><br /><br />---------------------------------------------------------------------------------------------------------------------<br />Appendix: One of Jim's 220 demand letters which the court verified shows proper form and purpose<br />---------------------------------------------------------------------------------------------------------------------<br /><br /><p><br /></p><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhMNNf0uxJ3NkinQIlK_DvXKKF3CpHknBXGum34ABYpwWFf1aYZB_VNZDSqllPqnEG43NpTMqLLh92eLAbvGfFWT7kbQ_9zxN4KFyHPXVEdQ_DesqWXfUilfs8-frwSguYALOXpxlA0JGvrDyX2Xe_wQpK2tQMspdgdLf_A_b2vEo7M2Aq_PWjM8vSGfDsa/s1442/Screenshot%202023-09-18%20at%206.40.15%20PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1442" data-original-width="1062" height="640" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhMNNf0uxJ3NkinQIlK_DvXKKF3CpHknBXGum34ABYpwWFf1aYZB_VNZDSqllPqnEG43NpTMqLLh92eLAbvGfFWT7kbQ_9zxN4KFyHPXVEdQ_DesqWXfUilfs8-frwSguYALOXpxlA0JGvrDyX2Xe_wQpK2tQMspdgdLf_A_b2vEo7M2Aq_PWjM8vSGfDsa/w472-h640/Screenshot%202023-09-18%20at%206.40.15%20PM.png" width="472" /></a></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgtE66TaBUfANoL4u-i5AV17SF1lzIcYyFN_Q-hN_TOXAOMV10j5GcuZdmIfL-OZBjSEGXABNaz6ahCWvWQM9101_0oy0Mxgu_ONCQy-_3wIxs89p72sJz2DHY6KPgCk4Nma3m2n4fiPdChntI-uIJT7_pCYChtuVVZQSjmelSTpIfNNE-LGhsgaa55DAUf/s1024/Screenshot%202023-09-18%20at%206.40.28%20PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="962" data-original-width="1024" height="376" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgtE66TaBUfANoL4u-i5AV17SF1lzIcYyFN_Q-hN_TOXAOMV10j5GcuZdmIfL-OZBjSEGXABNaz6ahCWvWQM9101_0oy0Mxgu_ONCQy-_3wIxs89p72sJz2DHY6KPgCk4Nma3m2n4fiPdChntI-uIJT7_pCYChtuVVZQSjmelSTpIfNNE-LGhsgaa55DAUf/w400-h376/Screenshot%202023-09-18%20at%206.40.28%20PM.png" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><br /></div><br />Dan Schumhttp://www.blogger.com/profile/05728696891530868697noreply@blogger.com7tag:blogger.com,1999:blog-754894216207950592.post-70186889852480590832023-07-31T15:55:00.002-07:002023-09-05T21:04:52.168-07:00Off Topic: The Firebird is Done!<div class="separator">In 2006 I bought a 1967 Pontiac Firebird that hadn't run in over a decade. I've been restoring ever since and it's finally done after 17 years, 3 months, and 11 days! Or actually it was 1 wedding, 3 kids, and 4 dogs. No wait I mean 4 cities, 4 rental houses, 3 purchased houses, and 2 states. I've paid more in towing fees than to buy the original car.</div><p>No stock talk in this post. Just an old car hobby.</p><p><span></span></p><a name='more'></a><p></p><p>In my mid-20s I decided it was time for a project car. I looked at one that could actually drive but thought that'll be too easy. So I found a car that hadn't run in many years. The guy I bought it from had only owned it for a year and kept at at the shop at work. I asked why you're selling and he says "my wife found out I bought it" hahahaha. </p><p>Someone was in the middle of working on the car and just gave up. There was no intake manifold or carburetor, and their bolts were just sitting in the middle of the V with a load of dirt. The AC was gone and heater core bypassed so someone was trying to make it faster. There were multiple layers of disgusting carpet and the interior was falling apart. The engine had headers bolted up without any other exhaust but a chrome tip screwed to the rear underbody. I found a bee hive in the kickpanel and a couple old .22 bullets under the passenger seat. A bungee cord held up the rats nest of a wiring harness under the dash. The interior had been rattle can spray painted plum purple right on top of all the plastic and vinyl. The door panels were homemade cardboard and the roof was dented in with a circular rust pattern that makes me think someone used it as a step stool or shelf. </p><p>For being a California car I found a lot of rust. You could poke through the trunk floor with your finger and stick a car key right through the rear window channel. The passenger side door had a ton of bondo, the front passenger fender was dented, and the triangle window on that side was broken; someone hit a pole or something. </p><p>All I saw was an excited project. I didn't really know what I was getting into but that's part of the fun. I had never rebuilt an engine or done any body work. I didn't know how a carburetor works. I was 25. I told people "it'll probably take me a year"...</p><p>In those first few years I worked on that car at least 5 days a week and all free time was spent reading. Every lunch break I read the forums at <a href="http://firstgenfirebird.org">firstgenfirebird.org</a> or <a href="http://classicalpointiac.com">classicalpointiac.com</a>. I was constantly looking on ebay for parts. I'm pretty good at not being overwhelmed by a big project, I just take it one step at a time. I was always reading about the next step. How to pull an engine out of a car, how to install a camshaft, what type of carburetor is best, how to bend brake lines. </p><p>First step was the engine. The car had a Pontiac 326 cu in V8 when I got it. I bought a junked 400 from some guy out in the desert. I bought books on how to rebuild an engine and spent hour after hour reading forums online for each bit. Next up the transmission. Someone had put a TH400 in the car out of a late 70s GMC. I bought a book on how to rebuild a TH400 then ripped it apart. I found an intake manifold on ebay and a carburetor from a 428 Bonneville. Again I bought a book on how to rebuild Quadrajet carburetors and worked my way through. I had knee surgery and during the week I was laid up I rebuilt the carb. I bought a new fuel tank and bent my own new lines. Got a new radiator and lines. Bent up new transmission cooler lines. Ripped all the old wiring out of the car and put in a completely new harness from Painless wiring. Put in a new exhaust from Summit Racing. Then I started it for the first time and it was amazing. You can see me in my youthiness here: <a href="https://www.youtube.com/watch?v=BQqL50ioGVQ">https://www.youtube.com/watch?v=BQqL50ioGVQ</a></p><p>Next was to make it driveable. I pulled apart and rebuilt the suspension with new hardware and bushings all around. New shocks and springs. The car had power brakes and I put on front discs from a '69 Camaro. New brake lines. Went through all the steering linkages. It drove for the first time after about two years of work and man the brakes were horrible. I had to replace a couple leaky valves and the master cylinder. What a trip: <a href="https://www.youtube.com/watch?v=pqxBqye6Ifc">https://www.youtube.com/watch?v=pqxBqye6Ifc</a></p><p>Then I pulled it all apart for body work. I bought a book on how to do classic car sheet metal work. Got another on body work and restoration. In college I worked as a machinist and welder so that part was not too difficult but bending and shaping was new. I practiced on sheet steel. I cut out and replaced the trunk floor. The rear quarter panels in front and behind the wheel well. Cut out and cleaned up then welded back in each rear wheel well. Lots of little panels I bent and shaped, welded back in and ground down to smooth. I have to say the metal work I think was my favorite part. Interior floors were mostly good but I replaced one of the rear passenger floors completely and had to replace chunks elsewhere. I cut out and replaced the window channel around the windshield and rear window completely, one six inch section at a time. Make a template, bend new steel into the right shape, cut out the old, weld in the new, grind it smooth. Rinse and repeat. Re-skinned the passenger door. We moved and had a kid then had another kid right away and I didn't touch the car for 3 years. I got back into it with two nights a week being Firebird time, from 9pm until how late can you stay up and still go to work the next day. It was great. We moved again and again. I started up a stock hobby. Had another child which was almost a year without touching the car. It took 9 years to go through all the sheet metal. </p><p>When we decided to move San Diego to the Bay Area the car just a shell without any wheels or anything. The engine was on a stand, transmission on a shelf. Hood, frame, and fenders sitting in the garage. In all I've moved the car to 7 houses, each time re-assembling what I had to for the move. I used to have so many bins and boxes of parts. Now it was time to actually put things back on for the final time and that was bonkers. The fuel tank and lines went back in, front subframe with new bushings. Suspension and brake lines installed for the final time. I asked the tow company what are your requirements, haha. They said it has to have seats, a steering wheel, a park position, emergency brake. I assembled what I had to and we moved north to San Carlos, CA. I slowly picked away at things. Put back in the rear window and a new windshield after 10 years out of the car. During covid I got back working on it feverishly. Reassembling the exhaust and cooling and fuel systems. Reconnecting wiring. I got it running once again: <a href="https://www.youtube.com/watch?v=TPywIgF_BUg">https://www.youtube.com/watch?v=TPywIgF_BUg</a></p><p>We moved up here to Portland, OR and I was in the home stretch. The past couple of years have been spent mostly on the cosmetics, interior, and exterior. I reassembled all the engine compartment little panels and mud guards. The whole interior I redid. You can buy everything you need to rebuild: new vinyl seat covers, seat foam and burlap. I was an upholstry man for months, stretching and pulling and crimping. New headliner. Throughout the build I've tried to keep as much stock as I can but that 50 year old pastic and vinyl is just shot. Every step of the way I had to figure out how it really goes since I didn't have a complete car to start with. Door panels should take hours but it took me a month or two because I didn't know all the pieces I was missing until I started going through. Reproduction parts are great but they don't just slide in, everything needs a little cut here, trim there. Sometimes you have to convince the parts where they should fit. The exterior chrome I cleaned up and polished and it turned out amazing. Front bumper is new since the original was bent and all the decals are new. But a lot of the parts are original: the door handles, window chrome, rear bumper. Every piece of this car has been taken apart and put back together at least once or twice. Not a single bolt or clip left untouched. </p><p>The only part of this I didn't do myself was exterior paint. I painted interior and underhood but the exterior needed to be nice and I've just never had faith in my own painting. I took it to Maaco and they did an amazing job. I did all the metal work, they did bondo, sanding, paint. </p><p>It's officially done as of yesterday. I got insurance a couple weeks ago and registered it with the DMV. It's legal and has an actual license plate. It is crazy to drive and thinking of completing an almost two decade project. </p><p>Now I don't know what to do with myself. It doesn't start well so I need to look at that. The engine has a hesitation I'll look into. But I bought it for a car to work on, not something to drive. Was feeling bored last night.</p><p>--Dan</p><p><br /></p><div class="separator" style="clear: both; text-align: center;"><img border="0" data-original-height="3024" data-original-width="4032" height="300" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgXj12xDfLEBcIOhrC6jnrYMaLzBWUyWHejP9LXaKFMzKmjcaiTfZ6PtnR96BBdfXc5sIX69Jr1k8veMqTErn-yOg3-QmQcIJKC0iZihruHj3h47SBEgmy_0q5l6ufyGD9MWXBZxCPMqOmd0n6j7Tvv3M6f2FkGbIUlagu1FWelFeybIaV0bSlumqSFiVyz/w400-h300/IMG_2747.JPG" style="caret-color: rgb(0, 0, 238); color: #0000ee; text-decoration: underline;" width="400" /></div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgwZt0eHt5_zJT5D5C7Rwhr74DADjzA5cIz6sigsTCviAvo39_zPmy4OALl69JnX6jYsE-EpGV6C599wrS2DWLgYtPDLmUCAnLyhCIBotyAAkr39miWu8VYNH3aaZEQp87L0OYbBZpS7Xl-GyMUptKJIAr_LrctnD-6IEkHDV7Cp_JcScE6MYfNT6lmw35I/s4032/IMG_2674.JPG" style="margin-left: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="3024" data-original-width="4032" height="300" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgwZt0eHt5_zJT5D5C7Rwhr74DADjzA5cIz6sigsTCviAvo39_zPmy4OALl69JnX6jYsE-EpGV6C599wrS2DWLgYtPDLmUCAnLyhCIBotyAAkr39miWu8VYNH3aaZEQp87L0OYbBZpS7Xl-GyMUptKJIAr_LrctnD-6IEkHDV7Cp_JcScE6MYfNT6lmw35I/w400-h300/IMG_2674.JPG" width="400" /></a></div><div></div><div><br /></div><div class="separator" style="clear: both; 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margin-right: 1em;"><img border="0" data-original-height="720" data-original-width="960" height="300" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhz1M8t5X63PoRKUiSoaBVdZYQIdtfyB00o7I35X5N8POBVlEOqOsiQdADmY8IO83L87PO-FIqHGdsNk0iPVDWnC0VqqXNrxtOF5MwnMdk1pEL03W9GHsdmarLjRP0dJrnn96Y5i1rjuF8r9kMushm76pe3RBURRI5DKOPxMyfPQZY5jvHsQMDYadAZ7Gjm/w400-h300/00-yhf6E4wlYj7FDv7XyhSrJHUA1BVXoNP2Mm9juFnr6w7UHgiCRpeC8RNPpIaSCVEk.jpeg" width="400" /></a></div>Dan Schumhttp://www.blogger.com/profile/05728696891530868697noreply@blogger.com17tag:blogger.com,1999:blog-754894216207950592.post-64248711199994890372023-07-19T21:53:00.001-07:002023-07-19T21:53:08.179-07:00Attention Hydromer HYDI Shareholders<p> Could all HYDI sharesholders please contact me at <a href="mailto:nonamestocksdan@gmail.com">nonamestocksdan@gmail.com</a>. I'd like to chat.</p><span><a name='more'></a></span><p><br /></p><p>Dan</p><p>--disclosure: long HYDI</p>Dan Schumhttp://www.blogger.com/profile/05728696891530868697noreply@blogger.com1tag:blogger.com,1999:blog-754894216207950592.post-42179021625300069362023-06-05T00:33:00.004-07:002023-06-05T20:02:07.686-07:00Activism and Change at GVP<p>I bought into GSE Systems (<a href="https://www.otcmarkets.com/stock/GVP/security">GVP</a>) a couple years ago due to change and here today I sit seeking more. </p><p>In the past year the stock is down ~70% yet somehow the CEO's compensation <a href="https://www.otcmarkets.com/filing/html?id=16614189&guid=ZAT-kqpWCxrDEhh">went up</a> by 75%. The CFO's pay is up 50%. The market cap is only $10.2m and they get $1.84m+0.91m = $2.75m!! These idiots are not worth a quarter of the company. That is a really bad look and I do not approve. </p><p>I am voting against the director nominees, against the ridiculous executive compensation, and against their planned >20% dilution. I invite you to do the same.<span></span></p><p>There is activism from several parties. Ankur Saggar has written several board letters and organized a website <a href="http://gvpshareholdersforchange.com">gvpshareholdersforchange.com</a>. SpearPointCapital has <a href="https://drive.google.com/file/d/1H54IiT64YWzbtMi-PrxZewA0axsLoMUe/view?usp=sharing">posted a deck</a> and pushes for others to vote against the status quo. Silverback is <a href="https://www.issuewire.com/silverback-acquires-stake-in-gse-systems-and-requests-board-and-management-changes-1764889401296424">trying</a> to get on the board.</p><a name='more'></a><span>The problem is GVP just looks so good. The stock is cheap and the company has wind at their back. Look at these charts. Lowest point in 10 years and lowest all time. </span><p></p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiv64952vzVv-jS0tXdxaHaXSR28UpwmBMDXgOqAxWZAUbTl0atH-ySNOtJQ0bf-hbF8h2L1fadA5heL2nK2jiJoTArSZrcyBtFOMZ3LMvhhLeYkZVhmzjGUqKxYXLcKa3zZ1FQaBc_zzS-dtpK4vBOdaSJ75IUYjDi4QCcWNZy51mHXoGmVe1vPAy4yg/s1170/Screenshot%202023-06-04%20at%209.38.13%20PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="678" data-original-width="1170" height="231" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiv64952vzVv-jS0tXdxaHaXSR28UpwmBMDXgOqAxWZAUbTl0atH-ySNOtJQ0bf-hbF8h2L1fadA5heL2nK2jiJoTArSZrcyBtFOMZ3LMvhhLeYkZVhmzjGUqKxYXLcKa3zZ1FQaBc_zzS-dtpK4vBOdaSJ75IUYjDi4QCcWNZy51mHXoGmVe1vPAy4yg/w400-h231/Screenshot%202023-06-04%20at%209.38.13%20PM.png" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi0IU7wdDdADC4YUqtwDIJE5peKc_XpK5BBN9d3NEDndkqEf2rdWvvkrUwTB07Bsjt4AYwVbjNhrSai0VpOS4Npg0A0d6400ZyQjnWHKB_Igc9fXMi8G59Xup-K2Tml0h7PxG3DbkAKWRcqvKeYR_7Y8zIEjIQuoNvUMJr_voV2qF6auIMsh-VSkd3fzQ/s1166/Screenshot%202023-06-04%20at%209.39.26%20PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="682" data-original-width="1166" height="234" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi0IU7wdDdADC4YUqtwDIJE5peKc_XpK5BBN9d3NEDndkqEf2rdWvvkrUwTB07Bsjt4AYwVbjNhrSai0VpOS4Npg0A0d6400ZyQjnWHKB_Igc9fXMi8G59Xup-K2Tml0h7PxG3DbkAKWRcqvKeYR_7Y8zIEjIQuoNvUMJr_voV2qF6auIMsh-VSkd3fzQ/w400-h234/Screenshot%202023-06-04%20at%209.39.26%20PM.png" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both;">GSE Systems provides staffing, technology, engeering services, and software to the power industry with a major focus on nuclear energy. I think the future is bright due to the global focus on carbon neutral energy as well as energy independence. Some quotes from the <a href="https://www.sec.gov/ix?doc=/Archives/edgar/data/0000944480/000114036123018700/brhc10050348_10k.htm">latest 10k</a>). <br /><blockquote>"Our services help our customers provide clean energy to all in a reliable and safe manner. There is growing recognition of the importance of low and zero carbon energy as the United States in particular, and the world in general, races to decarbonize power grids. We are uniquely positioned as one of the largest independent nuclear services companies in the United States to support decarbonization of the power industry. In fact, the more wind and solar that comes onto the grid, the greater zero carbon base-load becomes to ensure grid stability, reliability and safety. Decarbonization is a leading means of delivering environmental equity – ensuring that anyone regardless of background and economic status can benefit from a safe and healthy environment, free of pollution related to carbon intensive power generation. Our operations also include interactive software for tutorials and simulation for the refining, chemical, and petrochemical industries."<br /><br />"As we look ahead to 2023 and beyond, there is a continued focus from the current administration on decarbonizing the power sector, which is recognized as a key means in achieving environmental equity. In 2021, the United States rejoined the Paris Agreement on Climate Change climate accord. Consistent with that decision, the current administration has promoted zero carbon power sources such as nuclear energy and increased public spending in support of the industry and related industries. The bipartisan infrastructure plan passed in 2021, and Inflation Reduction Act passed in August 2022, each included spending elements specifically in support of nuclear power and nuclear technology development."<br /><br />"In light of these continuing policies, there has been a significant increase in the public awareness that nuclear power can be a big part of the grid in order to achieve zero carbon goals. In an article early in 2020, Yale360.com, highlighted the potential of new generation Small Module Reactors (“SMRs”) in driving the achievement of a zero-carbon grid. Nuclear, especially SMRs, are recognized for their potential to replace carbon intensive power generation while maintaining a smaller footprint than existing coal plants. In February 2021, the Montana State Senate approved a feasibility study to evaluate replacing coal fired power generation with SMRs at the Colstrip power plant. Further, the benefits of SMRs are also noted as a key element to restore ecological systems while simultaneously maintaining zero carbon power generation. Idaho GOP Rep. Mike Simpson has proposed a sweeping $33.5 billion plan to save the Pacific Northwest’s iconic salmon that includes breaching four of the most controversial dams in the country. The power generation of the dams would be replaced by building SMRs as part of this plan. As 2022 unfolded, Canada, Poland, the Czech Republic, Bulgaria and Romania have all announced plans to pursue the build out of nuclear power generation, especially initial review of SMRs. These economic and political factors support Management’s view that we are well positioned as one of the few publicly held companies serving the nuclear power industry with essential engineering services, technology and workforce solutions." </blockquote>My favorite part of the company conference calls are the CEOs comments on the macro environment becuase it sounds so, so good. I've been waiting and expecting the company to branch out into other energy fields but so far it hasn't happened. I feel like they could do similar work for wind, solar, etc. </div><div class="separator" style="clear: both;"><br /></div><div class="separator" style="clear: both;">The reason I initially got excited about the company is their software and margins. I had a call with the CEO Kyle Loudermilk almost two years ago now. He comes from a software background and what caught my eye was the company had started breaking out software specifically. He explained to me in the past the company had just sort of given away their software and he had worked on packaging that up for separate sale. He formed it into a division and began reporting software specifically in early 2017. He was adopting a Saas model which you know caught my eye due to the margins and recurring revenue. </div><div class="separator" style="clear: both;"><br /></div><div class="separator" style="clear: both;">The numbers look like a buy to me but man they have to stop the bleeding (from the <a href="https://www.sec.gov/ix?doc=/Archives/edgar/data/0000944480/000114036123018700/brhc10050348_10k.htm#CERTAINRELATIONSHIPSANDRE">most recent 10k</a>):</div><div class="separator" style="clear: both;"><ul style="text-align: left;"><li>23.6m shares out which is a bit high for me but not too bad</li><li>$0.44 stock price = 10.2m market cap</li><li>$47.7m rev</li><li>$10.2m book</li><li>$15m loss</li></ul><div>The losses are bad right now but I'm trying to give them the benefit of the doubt after covid. The company has been around a breakeven historically. Problem is they are not differentiating themselves from the market. Listening to conf call after call it's clear the company is banking on the industry lifting them up but I'm not buying into an energy ETF here. I want the company to force the market to take notice, not blend into the background. The talk was all software and Saas and margins but it just hasn't shown up. </div></div><p></p><p>Here is revenue over the past 6 years. Not pretty.</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi7eNkwMxLZrQpLUW_v4sWdB2MUqFBm9aBSFWPLPZm7Mg3s4MxuZtilZBhyCus23fk6EepNo585CpGgLYVYnATiW-wPv3OsXpgXnm730RH2JhM1d1EWTrRB6uXB1U2M3-OkdIRE8L2vmPiaiyLxMS4i9rAXAYMxI3cbu8enCu3LT3q7ol3jIHnLNpk49g/s912/Screenshot%202023-06-05%20at%2012.00.38%20AM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="566" data-original-width="912" height="249" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi7eNkwMxLZrQpLUW_v4sWdB2MUqFBm9aBSFWPLPZm7Mg3s4MxuZtilZBhyCus23fk6EepNo585CpGgLYVYnATiW-wPv3OsXpgXnm730RH2JhM1d1EWTrRB6uXB1U2M3-OkdIRE8L2vmPiaiyLxMS4i9rAXAYMxI3cbu8enCu3LT3q7ol3jIHnLNpk49g/w400-h249/Screenshot%202023-06-05%20at%2012.00.38%20AM.png" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: left;">Software revenue has been trending in the right direction but is not inspiring.</div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhNAH5vG96exrs0qKpSRIrv1vmJBYV4BoZfy0P9avL0SOtjHz3SebnfuXJ01JCxb1zFzkv0ZMGZ8yFEsC6DVbQT22LB7aoI0LSo9nXySBNK7npjjf3Yi5jDd30MSjeBF5ZUp08jQxmvjGEa2xAF0ef8znkFGooXa19W-MPFxBSjL2g4C89V7QHbr-hnGg/s912/Screenshot%202023-06-05%20at%2012.00.54%20AM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="566" data-original-width="912" height="249" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhNAH5vG96exrs0qKpSRIrv1vmJBYV4BoZfy0P9avL0SOtjHz3SebnfuXJ01JCxb1zFzkv0ZMGZ8yFEsC6DVbQT22LB7aoI0LSo9nXySBNK7npjjf3Yi5jDd30MSjeBF5ZUp08jQxmvjGEa2xAF0ef8znkFGooXa19W-MPFxBSjL2g4C89V7QHbr-hnGg/w400-h249/Screenshot%202023-06-05%20at%2012.00.54%20AM.png" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both;">And as for board politics GVP had one of the funnier things I've seen in the market. Last year the Chairman of the Board was VOTED OUT YET STAYED. What the hell. I don't even understand how that's possible but you can read about it <a href="https://www.otcmarkets.com/filing/html?id=15899164&guid=ZAT-kqpWCxrDEhh">here</a>. She was voted out and tendered her resignation then the board voted to keep her anyhow. I don't care what side you're on but they all need to go for that. <br /><ul style="text-align: left;"><li>"Kathryn O’Connor Gardner did not receive a majority of the votes cast</li><li>Ms. Gardner tendered her resignation as a member of the Board</li><li>The Board resolved to not accept the Tendered Resignation"</li></ul>The nail in the coffin for management here is the latest financing. <a href="https://www.otcmarkets.com/filing/html?id=16614189&guid=ZAT-kqpWCxrDEhh">In 2022 GVP entered into</a> a financing agreement with Lind Global and they want to pay back in stock. Since the stock has fallen in the toilet they have to pay over 20% off the common outstanding and due to Nasdaq rules need shareholder approval. I don't want to give it to them because this is the worst arrangement ever. Try cutting back on ridiculous executive pay before diluting me or cutting pay to the board who don't even know how to follow a shareholder vote. Maybe don't pay the CEO 18% of our market cap PER YEAR for starters.</div><div class="separator" style="clear: both; text-align: left;"><br /></div>In the end we have a cheap stock in a niche market with entrenched customers and macro tailwinds. I am surprised this stock has been a loser for me but from here at $0.43 at an all time low I think it will be a winner. I've been buying more recently and have voted against what I can. <div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjlPT9zEQypEgf7nZCFMH-Wa6ir2zW2ZU_LkN8F4rqEE7NncJEeXblb5FmjpDV7_LZIHkfHG7YUT45BO33CF1oOLLfhpVNm9WgqNXs7ro1cNknBEuX8zSo9lwHDKLt6wJ07dXGqjQ4LPjufgGvehld7B0pOtDXU5XlkvA7tLwYbiSMtYzjRfGPfhwdC_A/s2824/Screenshot%202023-06-04%20at%208.04.13%20PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1748" data-original-width="2824" height="396" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjlPT9zEQypEgf7nZCFMH-Wa6ir2zW2ZU_LkN8F4rqEE7NncJEeXblb5FmjpDV7_LZIHkfHG7YUT45BO33CF1oOLLfhpVNm9WgqNXs7ro1cNknBEuX8zSo9lwHDKLt6wJ07dXGqjQ4LPjufgGvehld7B0pOtDXU5XlkvA7tLwYbiSMtYzjRfGPfhwdC_A/w640-h396/Screenshot%202023-06-04%20at%208.04.13%20PM.png" width="640" /></a></div><div><br /></div>I hope the activists agitate for the greater good. I'm with them.</div><div><br /></div><div>--Dan</div><div>disclosure: long GVP</div><br />Subscribe to all NoNameStocks posts here: <a href="http://www.nonamestocks.com/2022/04/noname-annual-performance-2021-2022.html#">https://forms.feedblitz.com/erd</a>Dan Schumhttp://www.blogger.com/profile/05728696891530868697noreply@blogger.com19tag:blogger.com,1999:blog-754894216207950592.post-32287617024819371802023-05-29T20:28:00.003-07:002023-05-29T20:45:21.771-07:00POLXF Buyout Arb<p> <a href="http://www.nonamestocks.com/search?q=polxf">POLXF</a> announced a <a href="https://www.globenewswire.com/news-release/2023/04/27/2656830/8154/en/Polydex-Pharmaceuticals-Limited-and-BioSpectra-Inc-Announce-Business-Combination.html">buyout from BioSpectra</a> last month 4/27 for $2.017 per share of common. The stock sits at $1.74 which I think is too low. 16% just waiting for you to pick it up.<span></span></p><a name='more'></a><p></p><span></span><p>I've owned the stock since maybe 2015 and bought more over the years, mostly around a dollar. I <a href="http://www.nonamestocks.com/2019/05/polxf-business-for-free.html">wrote it up in 2019</a> at $0.78 and bought some more around $1.70 right when the news broke. I expect arbs to get within ~5% once people become comfortable and POLXF did just that before falling back down in the vacuum of information. </p><p>In the buyout announcement they said the next step is an "interim order approving the deal from the Ontario Court of Justice. Following receipt of a favorable interim order, the Company will call a meeting of shareholders to obtain shareholder approval...If the Arrangement is approved by shareholders at the shareholder meeting, the Company will then seek a final order from the Ontario Court of Justice approving the Arrangement and authorizing its closing." </p><p>They repeated the same info in the <a href="https://www.otcmarkets.com/otcapi/company/financial-report/367927/content">annual report</a> on 5/1 but said nothing since then. Stocks drop in the absence of news and the other day it went as low as $1.61 (25%!). <br /></p><p>I am holding my stock and waiting for the transaction. It's my 4th largest holding now. Of course I wish I had more but I'm glad I bought more as time went on.</p><p>I emailed investor relations the other day and just heard back. I've emailed with them a number of times and it does help to develop a rapport. Today they replied the interim order is done and shareholder meeting is scheduled for 6/14. I'll be getting it all in the mail soon enough. </p><p><br /></p><p>--Dan</p><p>disclosure: long POLXF</p>Dan Schumhttp://www.blogger.com/profile/05728696891530868697noreply@blogger.com10tag:blogger.com,1999:blog-754894216207950592.post-85465991020878614812023-04-17T23:29:00.003-07:002023-04-17T23:29:22.254-07:00NoName Annual Performance 2022-2023This has been my worst year with a -16.7% return, but today marks the completion of my first decade and a 10 year CAGR of 36.2% is nothing to sneeze at. Cheers all!<span><a name='more'></a></span><br />You can read my past annual performance posts <a href="http://www.nonamestocks.com/p/portfolio-performance.html">here</a>.<div><br /> <div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizXNPl5FKyAFxbtMhY1nG55331c4C2TNcGd9t9S4B0JL-u0sHPsxe3p7RRji69pwqmf3WM7xumf6bmqRYIF-zppD3L8t_qA-Q2v6XVgZwiTKUXeUdE46jNCcTGfxeBWzWfrMjcBmVunb6tlLxAMCJDzg59b_VDGaV5CNh_-RlF10RQu33sn-Nulqv3cg/s476/Screenshot%202023-04-17%20at%208.52.54%20PM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="476" data-original-width="400" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizXNPl5FKyAFxbtMhY1nG55331c4C2TNcGd9t9S4B0JL-u0sHPsxe3p7RRji69pwqmf3WM7xumf6bmqRYIF-zppD3L8t_qA-Q2v6XVgZwiTKUXeUdE46jNCcTGfxeBWzWfrMjcBmVunb6tlLxAMCJDzg59b_VDGaV5CNh_-RlF10RQu33sn-Nulqv3cg/w336-h400/Screenshot%202023-04-17%20at%208.52.54%20PM.png" width="336" /></a></div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjbV9sFYcHM3G_9Jk7P56SOn0RJ5QdEhiBnSOu9CcoWVTCYoFVYdz5wGtpVRxuylOYgTYqfwU0Eh871GpPaDA0HdwQBHjqOt88iYapdLcdPENZ5oAgRhPUsz1QYM4cNzoeg3vkls3Znzy-OHWADf5Dot06hjaxVd7MI2pyrKlKWGIcJNWl3JgI1CApURw/s910/Screenshot%202023-04-17%20at%208.53.09%20PM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="566" data-original-width="910" height="398" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjbV9sFYcHM3G_9Jk7P56SOn0RJ5QdEhiBnSOu9CcoWVTCYoFVYdz5wGtpVRxuylOYgTYqfwU0Eh871GpPaDA0HdwQBHjqOt88iYapdLcdPENZ5oAgRhPUsz1QYM4cNzoeg3vkls3Znzy-OHWADf5Dot06hjaxVd7MI2pyrKlKWGIcJNWl3JgI1CApURw/w640-h398/Screenshot%202023-04-17%20at%208.53.09%20PM.png" width="640" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><br />Hard to believe it's been 10 years since I first bought a stock. Investing has been one of my most rewarding experiences and definitely one of my best decisions. Without contributing all that much I've grown my retirement fund to nearly 20x what it was when I started. When I started out in stocks I was hoping to beat the market and I have far exceeded that so I'm very, very happy with how it's gone. <br /><br />In the past 10 years I've made ~10x on a handful of stocks: SIMA, CLSI, TCCO, QDLC. I've made over 500% on a few more: BMRA, HRBR, DPW, COMX. Biggest winner of course was HEMA at around 35x gain. I'm down over 90% on a lot of stocks: GIGA, SOFT, SLGD, MINM, MOTS, VCON, AYRO, IVC, SYEV, SLNH, HAUP, HCGS. What a graveyard! <br /><br />It's a game of extremes for me, and with all these little stocks on the brink of extinction it makes sense. I'm looking for maximum movement after all. I have a few 100-300% winners I'm riding right now in the hope they continue on up to be life changing returns: CVV, PGNT, POCI, SCIA, OPXS. And of course I keep buying some of these losers with potential to turn it around SLGD, MINM, BDRL, and more. <br /><br />Thank you all for the conversation. Thanks for reading and making me a better investor. Thank you for the ideas and the criticism. <br /><br />I will try to write more this year. The past couple years has not been great for my portfolio and that's cascaded into my blog. It's hard to find the motivation and confidence to tell others about a stock when you see your own losers all day. </div><div><br /></div><div>Below you can find my portfolio:<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgS3VFQmJ5HVUAeb1UT9Ry-I8wxcKB4a6fXOnkg-EswQBrVHQBBZap7K_Du_hSHEV_ZWBWWxXmv6OdUPD6FkUZ4yh2-Ij3yymwq7mwxuBlP82S_aXeS6VBhXfQbqmtSE0zlZaX9iVlqufR1tyErTpZE5xKKLcyQb7AF-7F_Hy7ERSqNpjDSTNzMxBOrcw/s1468/Screenshot%202023-04-17%20at%208.53.55%20PM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="866" data-original-width="1468" height="378" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgS3VFQmJ5HVUAeb1UT9Ry-I8wxcKB4a6fXOnkg-EswQBrVHQBBZap7K_Du_hSHEV_ZWBWWxXmv6OdUPD6FkUZ4yh2-Ij3yymwq7mwxuBlP82S_aXeS6VBhXfQbqmtSE0zlZaX9iVlqufR1tyErTpZE5xKKLcyQb7AF-7F_Hy7ERSqNpjDSTNzMxBOrcw/w640-h378/Screenshot%202023-04-17%20at%208.53.55%20PM.png" width="640" /></a></div><br />Now let's look at some stocks<div><br /></div><div><b><u>CVV</u></b></div>I first wrote up CVV at $12 about <a href="http://www.nonamestocks.com/2015/10/growth-at-cvv.html">8 years ago</a>. It was not a huge position and luckily so because it tanked. I bought more on the way down then <a href="http://www.nonamestocks.com/2018/11/cvv-is-too-cheap-to-ignore.html">wrote it up again</a> at $4 in 2018. I made it one of my largest positions in the 3's and otherwise have just been sitting and waiting. <br /><br />About two years ago <a href="https://www.otcmarkets.com/filing/html?id=14635626&guid=mbm-kpyrrl_ZfBh">change came to CVV</a>. In Jan 2021 the long time CEO and Chairman of the Board was terminated and replaced. A new chairman came on and a new CEO. They started a push towards higher margin products in growth markets and the numbers started to improve last year. The main driver right now is their Silicon Carbide product aimed at high power electronics. Revenue and backlog are moving in the right direction. <br /><br />Look at that chart. The resistance at 6. The ascending triangle formed over the second half of 2022. It was <a href="https://finance.yahoo.com/news/cvd-equipment-corporation-receives-additional-210100148.html">this news</a> of Silicon Carbide orders that started the move and what an explosion! <br /><br />The <a href="https://www.otcmarkets.com/filing/html?id=16536595&guid=mbm-kpyrrl_ZfBh">S3 filing</a> a couple weeks ago really muted the stock. I love the commentary in that filing. In fall 2021 they had a <a href="https://finance.yahoo.com/news/cvd-equipment-corporation-announces-sale-200500973.html">$28m real estate sale</a> fall through and this must be the backup funding plan. My hope is they need this cash for growth and it will pay off over the next few years. <div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjXsXNRDXQ5kS1pD2fVUQrdhph3bv3dERplSx6s_iB2py8Pd-StWfGRM9vTwP6vrTU45hXxANBo5OZlkBXQL_Trg3ttaQ3kfDu1dZZXjTZEdtfefF4X9H_FK0YI5mUN7M4gI7_ClOOdLlf_7oG14ufPR3j-JwZQ1yPvkvtPayU_3urtWWT9jJY6T85rSA/s1162/Screenshot%202023-04-17%20at%2010.07.36%20PM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="676" data-original-width="1162" height="372" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjXsXNRDXQ5kS1pD2fVUQrdhph3bv3dERplSx6s_iB2py8Pd-StWfGRM9vTwP6vrTU45hXxANBo5OZlkBXQL_Trg3ttaQ3kfDu1dZZXjTZEdtfefF4X9H_FK0YI5mUN7M4gI7_ClOOdLlf_7oG14ufPR3j-JwZQ1yPvkvtPayU_3urtWWT9jJY6T85rSA/w640-h372/Screenshot%202023-04-17%20at%2010.07.36%20PM.png" width="640" /></a></div><br /><div><br /></div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgOuPohUUAb2iHlA0gZmI3cJ4TVxQclvcgxSoAUGX1svWvcJ3M4xvbKZISEHs7cAzYOpABfxTeq4oKiSseiazaSfd7r3fxHnD62yRp--x66GbRxI0eRqDKGCe8f2prnbeXu5r0IKMxIm7veEYl_TgasBgT83fvhCPfT99n0OmaxOWsXhe-OIG92dz7nfw/s1166/Screenshot%202023-04-17%20at%2010.01.51%20PM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="678" data-original-width="1166" height="373" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgOuPohUUAb2iHlA0gZmI3cJ4TVxQclvcgxSoAUGX1svWvcJ3M4xvbKZISEHs7cAzYOpABfxTeq4oKiSseiazaSfd7r3fxHnD62yRp--x66GbRxI0eRqDKGCe8f2prnbeXu5r0IKMxIm7veEYl_TgasBgT83fvhCPfT99n0OmaxOWsXhe-OIG92dz7nfw/w640-h373/Screenshot%202023-04-17%20at%2010.01.51%20PM.png" width="640" /></a></div><div><br /></div><br /><div class="separator" style="clear: both; text-align: left;"><b><u>PGNT</u></b></div>This one is just cheap. I don't get it. These numbers tell me about a $20 stock. Right now it's just over $9 meaning PE a little more than 3 and still below book value. An amazing balance sheet with over $3 per share in cash. Look at the growth. Ridiculous. <div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhgp3wBGQVdEcRKAZRQaw5QAPAtW9Cub8NL9HMAewh_5m8LhMQgFZLv5XqviY2g89v3vh9JciqVjkT-fUYUogePK4msLR7fDTHQgb7RxFt4pfIyeD4nSEpJx4JXOyFMro9RWBJU5CgAB9CA7Eqq_o1tNHkZa_BWZI8-8ljhagtczwqL01ldlVs3yu2cOA/s824/Screenshot%202023-04-17%20at%2010.30.46%20PM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="346" data-original-width="824" height="268" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhgp3wBGQVdEcRKAZRQaw5QAPAtW9Cub8NL9HMAewh_5m8LhMQgFZLv5XqviY2g89v3vh9JciqVjkT-fUYUogePK4msLR7fDTHQgb7RxFt4pfIyeD4nSEpJx4JXOyFMro9RWBJU5CgAB9CA7Eqq_o1tNHkZa_BWZI8-8ljhagtczwqL01ldlVs3yu2cOA/w640-h268/Screenshot%202023-04-17%20at%2010.30.46%20PM.png" width="640" /></a></div><div><br /></div>The stock has done well since I first bought around $2. I've continued to buy up to the mid-7's I think. It's cheap<br /><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg1vV-7M1HLf36gC0PmbByWSXIweCrBkNAtssVLxMh8HH-YEyLcAcQ8xss9HxBRX_fToAz8kH5OemwfMrzSohpzPuq99Q8t0c7FWbGLOF-DTqhIUPrH0uAwmIi6Ud0kEUDhdYoxsFrXjpn_ue2HSDlvLmbBMgqamcDC87RtzohFraXfTwttfevg31q7Eg/s1162/Screenshot%202023-04-17%20at%2010.31.16%20PM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="676" data-original-width="1162" height="372" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg1vV-7M1HLf36gC0PmbByWSXIweCrBkNAtssVLxMh8HH-YEyLcAcQ8xss9HxBRX_fToAz8kH5OemwfMrzSohpzPuq99Q8t0c7FWbGLOF-DTqhIUPrH0uAwmIi6Ud0kEUDhdYoxsFrXjpn_ue2HSDlvLmbBMgqamcDC87RtzohFraXfTwttfevg31q7Eg/w640-h372/Screenshot%202023-04-17%20at%2010.31.16%20PM.png" width="640" /></a></div><div><br /></div><br /><div><b><u>SLGD</u></b></div>Time for a loser and boy oh boy look at that chart. Yuck with a capital Y. I first bought in the mid-1s in 2016 then expertly wrote it up at the absolute peak in<a href="http://www.nonamestocks.com/2018/04/slgd-continues-to-be-cheap.html"> early 2018</a> LOL. 'After' the drop I bought more at a buck in 2019 then watched in glee as it came back up to $3 giving me some wonderful gains I was too smart to lock in. <br /><br />Now they are selling off division after division trying to stay afloat. <a href="https://www.otcmarkets.com/filing/html?id=15701147&guid=0jX-kH8bvsE_B3h"> In 2020</a> SLGD sold off manufacturing operations and terminated the distribution agreement with Montagne Jeunesse. In 2021 they sold Dryel and stopped the Batiste dry shampoo distribution. In 2021 the CEO Goldstein <a href="https://www.otcmarkets.com/filing/html?id=14903757&guid=0HX-kK_3v0qmB3h">retired</a> and they brought in <a href="https://www.businesswire.com/news/home/20211018006005/en/Scott’s-Liquid-Gold-Announces-Management-Team">new management</a>. Hell in <a href="https://finance.yahoo.com/news/scott-liquid-gold-inc-announces-110500048.html">Jan 2023</a> they even sold the wood treatment line which means Scott's Liquid Gold doesn't even own Scott's Liquid Gold! <br /><br />I'm not sure what to make of all that but it's change on top of change on top of change and that's what I'm after. I've been buying more and will probably continue. Market cap now is around $2.5m. The Company’s remaining brands include Alpha Skin Care, Biz Stain Fighter, Kids N Pets and Messy Pet, Denorex shampoo, Neoteric Diabetic Skin care, and Zincon Shampoo. Book value is $2.8m and I think what they have is worth more than that. <div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjM2pJUBMlZEhn4UV5QiDGEmMhl51ZHtqAxbBZmqAx5nusHsi5NPAJNM0nzgqF8NZmn3ThHXD1yMfH_H4rrI-HoiDkB3dYboLZQjSf-D7j9DoPMAkGJEelSTAOLF3OA064rK5f3-01KjcRuoxbid_HgQ-FnLmLuw7AyLx9oGV4erk5rO6FZWYvZ7e3BMg/s1164/Screenshot%202023-04-17%20at%2010.37.23%20PM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="682" data-original-width="1164" height="374" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjM2pJUBMlZEhn4UV5QiDGEmMhl51ZHtqAxbBZmqAx5nusHsi5NPAJNM0nzgqF8NZmn3ThHXD1yMfH_H4rrI-HoiDkB3dYboLZQjSf-D7j9DoPMAkGJEelSTAOLF3OA064rK5f3-01KjcRuoxbid_HgQ-FnLmLuw7AyLx9oGV4erk5rO6FZWYvZ7e3BMg/w640-h374/Screenshot%202023-04-17%20at%2010.37.23%20PM.png" width="640" /></a></div><div><br /></div><br /><div><b><u>ETCC</u></b></div><div>Oh you like seeing my losers, well check this! Here is another I'm buying right now. I wrote this one up <a href="http://www.nonamestocks.com/2019/01/etcc-and-power-of-change.html">3 years ago</a> at $0.58. Covid hit them hard and they didn't file reports for a year. In Jan 2021 they filed 3 Qs and a K then disappeared for another 7 months until coming back to normal filing in Sept 2021. Revenue dropped and times were tough which you can see in the chart. </div><div><br /></div><div>But what is that spike I see in early 2023? The company <a href="https://finance.yahoo.com/news/etc-aircrew-training-systems-unit-184800811.html">announced</a> an $85m contract. Market cap is $4m right now which is less than the quarterly revenue. Book value is almost nothing and the company loses money but only a few years ago revenue was $50m. </div><div><br /></div><div>I'm surprised the stock dropped back down after the contract announcement. Wait and see I guess. Questions for me are timing and margins which we don't know. </div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiMH7iKpfPJwOyjlMWJRGhCK8U7uD0Iebb9-tpHHWrGLWlJC9hjaxN6KiVyCGhvzwUBYDc3kgPCRycwshf8CvmbsN_wYeUmaqwmFbt46b0oSzjfM05gqXm7_tGffYVAJzAYhWa450dNbdkOoCwYEUOc6iNOpyn50Msu2hcVV1T9XZZ8F7hIM4lREqH3vQ/s1164/Screenshot%202023-04-17%20at%2011.05.06%20PM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="680" data-original-width="1164" height="374" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiMH7iKpfPJwOyjlMWJRGhCK8U7uD0Iebb9-tpHHWrGLWlJC9hjaxN6KiVyCGhvzwUBYDc3kgPCRycwshf8CvmbsN_wYeUmaqwmFbt46b0oSzjfM05gqXm7_tGffYVAJzAYhWa450dNbdkOoCwYEUOc6iNOpyn50Msu2hcVV1T9XZZ8F7hIM4lREqH3vQ/w640-h374/Screenshot%202023-04-17%20at%2011.05.06%20PM.png" width="640" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhg70AT56s-K4sqO7XhDVYN3TO7Q5w4uQU7q_zeCL8Sq9x0AJJa6URjZbo907Cm-mDAc8ZYmyox0D2oxrQxH4lQ251jAY3rolsovu0HYnOVN6C8Gq2v6uIE5094vao_BU2sXXoFd1sLrKjuBfTKtHqy487DTAKEiMKHy_6l5riXk5zrhLvoceO80atyYg/s1164/Screenshot%202023-04-17%20at%2011.06.11%20PM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="676" data-original-width="1164" height="372" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhg70AT56s-K4sqO7XhDVYN3TO7Q5w4uQU7q_zeCL8Sq9x0AJJa6URjZbo907Cm-mDAc8ZYmyox0D2oxrQxH4lQ251jAY3rolsovu0HYnOVN6C8Gq2v6uIE5094vao_BU2sXXoFd1sLrKjuBfTKtHqy487DTAKEiMKHy_6l5riXk5zrhLvoceO80atyYg/w640-h372/Screenshot%202023-04-17%20at%2011.06.11%20PM.png" width="640" /></a></div><br /><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Take it easy. Keep the emails and comments coming. On to the next 10 years!</div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;"><br /></div>--Dan<br />disclosure: long all the stocks in my portfolio picture<br /><br />Subscribe to all NoNameStocks posts here: <a href="http://www.nonamestocks.com/2022/04/noname-annual-performance-2021-2022.html#">https://forms.feedblitz.com/erd</a></div></div>Dan Schumhttp://www.blogger.com/profile/05728696891530868697noreply@blogger.com22tag:blogger.com,1999:blog-754894216207950592.post-42042345291793153072022-11-30T22:52:00.003-08:002022-12-15T08:13:33.927-08:00IVRO You Can Taste the Potential<p>Sometimes a stock just looks so good you have to buy. <a href="http://www.invitrointl.com/">InVitro International</a> (<a href="https://www.otcmarkets.com/stock/IVRO/overview">IVRO</a>) is tiny, profitable, and debt free. The stock sits at a low after falling from a big rise. <span></span></p><a name='more'></a><p></p><p>When assessing potential you have to start with the business. I don't go that deep with relative competitive analysis or anything but with a quick glance you can at least know whether you have a melting ice cube. IVRO is looking to the future. They are pushing the world towards non-animal based testing. Making products that allow development of lotions and cosmetics without involving animals. I believe in the mission and find it hard to believe the world would not move in this direction. A few quotes from the <a href="https://www.otcmarkets.com/otcapi/company/financial-report/314825/content">most recent annual</a>: </p><blockquote>The Company is a pioneer in the field of non-animal testing and was first to develop and commercialize its flagship product Corrositex® in 1991. The global regulatory bodies that govern non-animal testing did not exist at the time. These regulatory bodies started to evolve in early 2000’s and then consolidated into a more robust global regulatory system in the last few years. Organization for Economic Co-operation and Development (OECD) is the foremost such regulatory body today, with 37 member countries, including the US, and covers more than 80% of the world of commerce.<br /><br />In 2014, Corrositex® was adopted by OECD, with the publication of Test Guideline (TG) 435. Following this regulatory approval, Corrositex®, became Global Harmonization System (GHS) accepted as a full replacement for animal test results virtually everywhere in the world of commerce. The OECD/European Centre for the Validation of Alternative Methods (ECVAM), Transport Canada, U.S. DOT, EPA, OSHA, Consumer Product Safety Commission, FDA, and the International Air Transport Authority (IATA) all have accepted Corrositex® as an alternative as well.<br /><br />In November 2019, the OECD published Test Guideline (TG) 496, the final step in the adoption of the Company’s now 30 year old core technology, Ocular Irritection® (OI). OI thus completes an eleven year effort to become the first 100% animal free ocular irritancy test method to be OECD accepted, validated and adopted for 37 countries, including the U.S.<br /><br />Each of the above mentioned Regulatory Advancements are the result of many years in a strategic alliance with INT.E.G.RA in Italy. The Company partnership sells and distributes both laboratory test results and kits in Italy and several European markets. In addition, the partnership coordinates and facilitates regulatory approvals and acceptances from authorities and agencies within the OECD. The Company has over a dozen testing laboratory partnerships globally to help commercialize its technology.</blockquote>Now to some numbers. My favorite thing about IVRO is how small and tight it is. In the market's opinion, a lot of houses are worth more.<div><ul style="text-align: left;"><li>stock price $0.055</li><ul><li>market cap $1.25m</li></ul><li>22.66m shares out</li><li>book value $1.42m</li><ul><li>cash $1.17m</li><li>debt zero</li></ul><li>revenue ~$1m</li><li>earnings positive averaging $68k over past 4 years</li><ul><li>$0.003 EPS </li></ul><li>35% inside ownership </li></ul><div>That sounds like something I want to own right there. Priced a little under book and just over revenue. Profitable in an industry with the wind at their back. Take out the cash and you get a business for free. </div><div><br /></div><div>Which brings us back to the business. I know what you're thinking, if this is so great why is is priced like nothing? Those quotes above say the company has been at it for 30 years so why buy in now if all we have done so far is grow revenue to the unimpressive level of one million dollars. I feel like the ice cream shop down the street might take in more. </div><div><br /></div><div>But your job as a stock analyst is to look to the future. Find the change and spot the inflection point. I am forever looking for change. </div><div><br /></div><div>Some recent activity:</div><div><ul style="text-align: left;"><li><a href="https://www.otcmarkets.com/stock/IVRO/news/News-Release---3-and-9-months-ended-June-30-20172016?id=166669">Aug 2017</a> IVRO starts putting out press releases filed with OTC markets new service with such exciting titles as "<a href="https://www.otcmarkets.com/stock/IVRO/news/InVitro-News-Release-12720?id=282534">InVitro News Release 12.7.20</a>"</li><li><a href="https://www.otcmarkets.com/stock/IVRO/news/Management-Transition?id=183509">Feb 2018</a> management transition. Leader of 23 years is stepping down as president. New president is a former employee Kleiner.</li><ul><li>"Mr. Ulmer will maintain his position as CEO, along with his seat on the board, and begin putting greater emphasis on properly positioning InVitro International to take full advantage of developing opportunities in the global testing alternatives marketplace."</li></ul><li><a href="https://www.otcmarkets.com/stock/IVRO/news/InVitro-International-announces-Atul-Jhalani-as-President?id=230873">June 2019</a> new president taking over Jhalani</li><ul><li>"Jhalani has joined the company as President to accelerate the company’s strategic objective of becoming the leading “in vitro” non-animal testing company globally"</li></ul><li><a href="https://www.otcmarkets.com/stock/IVRO/news/IVRO-OECD-496-IAS-ADOPTION-IR-12319?id=248134">Dec 2019</a> the OECD announces IVRO product is adopted for global use</li><ul><li>"OI is the first 100% animal free ocular irritancy test method to be adopted by OECD and its 36 member countries representing about 80% of global trade, including the United States. This adoption culminates an 11 year effort with OECD which is viewed as the world’s foremost Regulatory body for in vitro test methods"</li><li>"In 1985 IVRO pioneered 100% cruelty free test methods when there was not even one specific regulatory body to set standards or approve test methods anywhere in the world. Now 35 years later, OECD adoption represents the highest scientific review level for any non-animal test method"</li></ul><li><a href="https://www.otcmarkets.com/stock/IVRO/news/InVitro-Announces-Appointment-of-Investor-Relations-Partners?id=306622">June 2021</a> IVRO hires an investor relations firm</li><ul><li>"With our continued financial improvements, recovering economy and improved regulatory condition, we believe InVitro presents an extremely undervalued investment story that will resonate with the micro-cap investment community"</li></ul><li><a href="https://www.otcmarkets.com/stock/IVRO/news/IVRO-Pursues-Mission-To-Help-Make-Non-Animal-Testing-Famous-Releases-FY-Q3-and-YTD-2021-Results?id=314705">Aug 2021</a> IVRO starts their new add campaign "Mission to Help Make Non Animal Testing Famous" detailing out their strategy</li><ul><li>"In June, 2021, Maine became the sixth U.S. state to ban the sales of new cosmetic products tested on animals. It now joins Hawaii, California, Illinois, Nevada and Virginia in implementing such a ban; with impending legislation in New Jersey, Maryland, New York, Rhode Island and Oregon. Is a U.S. wide ban in our near future? China is the second largest cosmetics market in the world and its long standing requirement for 'animal testing' of cosmetic products has been a major hurdle for non-animal testing globally. In 2021, China provided a pathway for companies to import as well as to sell non animal tested cosmetics. This global legal momentum and changing consumer attitudes bodes well for our future.'"</li></ul><li><a href="https://www.otcmarkets.com/stock/IVRO/news/IVROS-Mission-To-Help-Make-Non-Animal-Testing-Famous-Now-Searches-For-Strategic-Partners?id=319036">Sept 2021</a> IVRO announces a search for "strategic partners"</li><ul><li>"announced today that it has taken a first step in its search for strategic partners. IVRO entered into Letter of Intent (LOI) discussions where, although nothing certain can be forecasted, the Company believes results could be instrumental in furthering IVRO's primary mission to "Help Make Non-Animal Testing Famous""</li></ul><li><a href="https://www.otcmarkets.com/stock/IVRO/news/IVRO-Announcement-12821?id=334666">Dec 2021</a> IVRO gave an update on the legislative climate with annual results</li><ul><li>"This fiscal year has brought significant improvement in global laws for non-animal testing. China removed its requirements for animal testing for most imported cosmetic and personal care products. Mexico recently became the first country in North America and the 41st country in the world to ban the sales of new cosmetics tested on animals. In the United States, New Jersey became the eighth state in the country, and the fifth this year, to pass a law banning the sale of new cosmetics tested on animals, following California, Nevada, Illinois, Virginia, Maryland, Maine and Hawaii"</li></ul><li><a href="https://www.otcmarkets.com/stock/IVRO/news/Stock-Repurchase-by-IVROs-Management-Shows-Increased-Confidence-in-Future-of-Non-Animal-Testing?id=350029">Mar 2022</a> IVRO announces buying back 100k shares</li><ul><li>"I believe our decision reflects IVRO management's continuing strong belief in the future of NON-Animal testing; worthy of special note, just recently "The Humane Cosmetics Act of 2021" arrived on the floor of the U.S. Congress after many years in Committee"</li></ul><li><a href="https://www.otcmarkets.com/stock/IVRO/news/story?e&id=2384141">Nov 2022</a> IVRO announces a new opportunity for growth by buying a testing lab. And seems they want to buy more.</li><ul><li>"announced it has signed its first Letter of Intent (LOI) to acquire a privately owned, U.S. based testing laboratory. Over many years this laboratory has served IVRO targeted markets profitably and its principals agree that the future is bright for NON-Animal testing."</li><li>"this initial acquisition effort may be viewed as a great opportunity by other laboratories globally. Acquisitions by public companies can provide an exit strategy for the owners/founders of privately owned laboratories, allowing them to continue to operate their businesses independently, as a wholly owned subsidiary of a public entity. This also provides potential growth opportunities and synergies for IVRO. We believe we can benefit from broader market exposure, faster development of in vitro test technologies, and increased revenue and resources.""</li></ul></ul>You can see the trajectory in the bullet points above and chart below. Look at the stock price respond to increased communication. The excitement built then the top blew off. I didn't sell and have bought more in those big volume days down here around a nickel. Maybe I should've sold but I feel like this company's best days are in front of us.</div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhsbr837zHHE4eF-_K8aGSLzhNanvWOtaGc0pFnMrCyetdl4eLiRqbhLDVTS4jEVMOsS2UJT9pcFds9GlPQtTCgfiefXjFUhOBr7niWoYyYpBB42fXkiw-5VCluWGvCrum09Ik-C863M7yg_7W4Lhl323v5wPlJxB9wk9NEM2UP-PKPbTb5wWa3qLmzPw/s1168/Screen%20Shot%202022-11-30%20at%2010.36.53%20PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="680" data-original-width="1168" height="373" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhsbr837zHHE4eF-_K8aGSLzhNanvWOtaGc0pFnMrCyetdl4eLiRqbhLDVTS4jEVMOsS2UJT9pcFds9GlPQtTCgfiefXjFUhOBr7niWoYyYpBB42fXkiw-5VCluWGvCrum09Ik-C863M7yg_7W4Lhl323v5wPlJxB9wk9NEM2UP-PKPbTb5wWa3qLmzPw/w640-h373/Screen%20Shot%202022-11-30%20at%2010.36.53%20PM.png" width="640" /></a></div><br /><div>The CEO of 23 years, who owns 12%, had a change of heart. He started putting out press releases then he stepped aside and split up his duties to bring the company to a new level. They are acting like a real public company now that actually cares about growth and shareholders. What a crazy thought! </div><div><br /></div><div>The most recent announcement about buying a lab is super exciting to me. I mean I don't know any more than the press release which stated the lab is profitable but at least they are trying. They are growing and becoming integrated. Doing something with the cash they've built up. IVRO is looking for more. I want to see where they go with this.</div><div><br /></div><div>And look back at those comments from the company on the political situation. The world is moving away from animal based testing. How can we not?</div><div><br /></div><div>Change is what makes money in the stock market. You are looking it in the face.</div><div><br /><br />--Dan<br />disclosure: long IVRO<br /><br /> Subscribe to all NoNameStocks posts here: <a href="http://www.nonamestocks.com/2022/04/noname-annual-performance-2021-2022.html#">https://forms.feedblitz.com/erd</a></div></div>Dan Schumhttp://www.blogger.com/profile/05728696891530868697noreply@blogger.com11tag:blogger.com,1999:blog-754894216207950592.post-49207210291926213152022-11-10T00:17:00.000-08:002022-11-10T00:17:04.119-08:00DYSL Tender<p>A few days ago <a href="http://www.nonamestocks.com/search/label/DYSL">DYSL</a> put out a tender offer to buy back 54% of their common at $2.49. I <a href="http://www.nonamestocks.com/2019/09/catching-dysl-de-reg-drop.html">first wrote up</a> the stock at $0.81 and my portfolio has been ugly recently so it feels great to have a win. </p><p>I'm not sure yet what to do so let's run through some scenarios.<span></span></p><a name='more'></a><p></p><p>First a chart because it tells the full story. You can see the stock rise in 2013 as the public started to believe in the potential of DYSL's Xcede product. It never took off and you can see the disappointment in late 2018 as the company closed up the division. Volume disappears as the company de-registered from the SEC in the fall of 2019, going dark and vanishing from the public eye. The company continued to send annual reports to shareholders and hence the sudden rise in late 2021 when a record year and subsidiary sale was reported. </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhaw1ChLUfcuMxXHiiUOuLsntMKAMNyCd6TwoK1MongU_ze3FkSPJ3ZZuDG02ucjVy6Vlu8BbnRD9tsN3xhEKuTJYHDLdMGrDEztluGf7oOEQyIQqn1YqmiYn0VO6Ic5It6xRAScx6OyMnQ7uezyMfyLJPv-BQbt_npwx_S9zdYMCo0_tJVWjk8Xj_Wkg/s1168/Screen%20Shot%202022-11-09%20at%209.53.43%20PM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="680" data-original-width="1168" height="373" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhaw1ChLUfcuMxXHiiUOuLsntMKAMNyCd6TwoK1MongU_ze3FkSPJ3ZZuDG02ucjVy6Vlu8BbnRD9tsN3xhEKuTJYHDLdMGrDEztluGf7oOEQyIQqn1YqmiYn0VO6Ic5It6xRAScx6OyMnQ7uezyMfyLJPv-BQbt_npwx_S9zdYMCo0_tJVWjk8Xj_Wkg/w640-h373/Screen%20Shot%202022-11-09%20at%209.53.43%20PM.png" width="640" /></a></div><br /><p>For the 9 months prior, the stock was flat at ~$1.25 giving a market cap of $18.5m. Then they reported $6.3m in operating income and sold 2 divisions for $32m! Talk about a blowout. I don't think those divisions were even half their revenue. </p><p>Fast forward a year and now we have the $2.49 buyout. DYSL is offering to buy 8m shares which is 54% of the 14.8m shares out. Question is do we take the offer...</p><p>In each of my first two writeups I said the stock was worth at least $2 and all along that has been my thinking, so from that point of view I should take the money and run. But we have a couple weeks to think it over so let me check in a little closer. </p><p>One way to look at this is value the shares based on most recent numbers assuming the offer is completed. In the tender they geve the most recent 9 months numbers plus a balance sheet so we can use that. There's $28m in cash and DYSL is about to spend $20.5m on a tender so let's say they have $5m excess cash. For a valuation let's say I normalize the 9mo earnings and give it a 10 PE, that makes ~$12m and we add the 5m excess cash. Let's add a few million for the <a href="http://www.nonamestocks.com/2019/09/catching-dysl-de-reg-drop.html">real estate</a> I think they have left and we get $20m for the company = $2.94 per share given the 6.8m shares after the tender completes. </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhROt2yEdJZIySReUrOGg9z6S0hlqo4ooMm9AsiauT7vHCPLuOHiXH7_eq8qZqVhzKp_pEnzdii_1-2lFLp65vg6wC1PDcEs9_Xyt_xLx7MKy9p8K7U3mvTwCTu55p4pCak_z2cPw2E6SJDKtHEVwzz0aC-bN7aCG2t_OKfSHwNQwQq8MpSAi-Zz9ritw/s1262/Screen%20Shot%202022-11-09%20at%2010.18.49%20PM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="690" data-original-width="1262" height="350" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhROt2yEdJZIySReUrOGg9z6S0hlqo4ooMm9AsiauT7vHCPLuOHiXH7_eq8qZqVhzKp_pEnzdii_1-2lFLp65vg6wC1PDcEs9_Xyt_xLx7MKy9p8K7U3mvTwCTu55p4pCak_z2cPw2E6SJDKtHEVwzz0aC-bN7aCG2t_OKfSHwNQwQq8MpSAi-Zz9ritw/w640-h350/Screen%20Shot%202022-11-09%20at%2010.18.49%20PM.png" width="640" /></a></div><p>We could also take the balance sheet and just assume book value which is $44.4m. Divide by the current share count of 14.8m shares and we get a value of $3 per share. </p><p>If we extrapolate the latest 9mo numbers to 12mo we have $38m revenue. If we go with a 1x sales multiple then add say $25m current excess cash + $3m real estate we get $66m total value ~= $4.50 per share with our 14.8m shares out right now. </p><p>The final valuation method I have in me here is to base on the projections given in the tender. Looks like they predict a fairly stagnant company so I'll just go with $1.5m net income * 10 = $15m for the company = $2.20 per share with our future 6.8m shares out. Or if you say 1x sales that'd be more like $5 per share. </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimd_c36xMa9cIfK7eFGiHpFAoJkKXdquv0XQ9CSL1pPH_CGICzXDxONz9eUZVijb9WhPmY3UVxMsp5BCU69MLyL1zXcwuOvtrOE4-U38VNfIdmJUUuEwD2Lc-5AHFhYKeefHsMJhUCu8EwkmuYTm42zNdXC7gu1D9OhJgB5SDxwmsezjfQvtMyv5gsVw/s1266/Screen%20Shot%202022-11-09%20at%2010.31.42%20PM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="508" data-original-width="1266" height="256" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimd_c36xMa9cIfK7eFGiHpFAoJkKXdquv0XQ9CSL1pPH_CGICzXDxONz9eUZVijb9WhPmY3UVxMsp5BCU69MLyL1zXcwuOvtrOE4-U38VNfIdmJUUuEwD2Lc-5AHFhYKeefHsMJhUCu8EwkmuYTm42zNdXC7gu1D9OhJgB5SDxwmsezjfQvtMyv5gsVw/w640-h256/Screen%20Shot%202022-11-09%20at%2010.31.42%20PM.png" width="640" /></a></div><br /><p>So those are my estimates and it sounds like the $2.49 is not all that far off, though I could see it being a bit higher. Maybe I should just take it and move on. But I'm always thinking about the future and what if. I try to understand the motivation of all players involved. </p><p>On the one hand we have what seems like a decent price with the stock at a 10 year high. The CEO is 71 now and owns about a quarter of the company, maybe this is him saying goodbye. Unfortunately the tender offer does not say what the insiders who own 54% of the company intend to do. The stock is on the expert market so liquidity is nothing and it's hard to say when the next chance to get out might be. </p><p>But what about that sale of 2 divisions for $32m? That sounds pretty crazy for an $18.5m market cap stock. What if the whole company were worth that multiple? </p><p>Below are some numbers since 2016 and a description of the divisions vs their reported segments. When submitting 10k's, the company used to break out divisional performance. They had 4 Optics divisions which you can imagine what they do, and one Innovation & Development (RMD) which was mostly a group of research brains for hire. Revenue was about evenly split between the two reporting segments with gross margin a bit higher for RMD than optics. </p><p>They sold 2 of their 4 optics divisions, which as a whole had historically lower margins than RMD, for almost twice the market cap of the whole company! </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiWz5QeupUE4IFhWHAsiGbqPH4affrWdMs1oHcPI10VI2e_D64tSSSahcq1fE_OshCDxbZqe_JmDAMBipKQOL94hzIkSjlBC5w3QbN8Kjg6xP9AhwiZFNGe_M4KJrd-fPuIoKOhLIieLsfHpKXO7n8kZoizu2BJwSTfDXYOHJLBzLH2PF7gcOTO3EngcA/s722/Screen%20Shot%202022-11-09%20at%2010.57.06%20PM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="234" data-original-width="722" height="130" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiWz5QeupUE4IFhWHAsiGbqPH4affrWdMs1oHcPI10VI2e_D64tSSSahcq1fE_OshCDxbZqe_JmDAMBipKQOL94hzIkSjlBC5w3QbN8Kjg6xP9AhwiZFNGe_M4KJrd-fPuIoKOhLIieLsfHpKXO7n8kZoizu2BJwSTfDXYOHJLBzLH2PF7gcOTO3EngcA/w400-h130/Screen%20Shot%202022-11-09%20at%2010.57.06%20PM.png" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiM4OzFJ0kZ__Nq1ikGJIJF6pDzdfm4LAxjBNig9cHiK9ltEq4VUY9JtQk87xzpdbmPGM8UbB2Wer9TJOUKT-S-qPG5CEM0apgf-R9MkqzuhgYjbg053fiiKzv0IxInLi-F8FuK-o6NlumH1UCd_aQaKB4cMektnaR-ktxdm3tCHoA48NL58kYLWShniQ/s1428/Screen%20Shot%202022-11-09%20at%2010.55.22%20PM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="506" data-original-width="1428" height="226" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiM4OzFJ0kZ__Nq1ikGJIJF6pDzdfm4LAxjBNig9cHiK9ltEq4VUY9JtQk87xzpdbmPGM8UbB2Wer9TJOUKT-S-qPG5CEM0apgf-R9MkqzuhgYjbg053fiiKzv0IxInLi-F8FuK-o6NlumH1UCd_aQaKB4cMektnaR-ktxdm3tCHoA48NL58kYLWShniQ/w640-h226/Screen%20Shot%202022-11-09%20at%2010.55.22%20PM.png" width="640" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><br /></div>Unfortunately they never split out the individual optics divisions in reports so I don't know how much revenue was in the sold divisions Optometrics and EMF. When in doubt take a guess and so here we go. What I want to know are the margins and revenue split for the different divisions so I can figure out what multiple they sold for and how likely that is to be repeated in the future. <div><br /></div><div>First we do have a few quotes from recent reports. In the tender they said, "Based on our confidence in the long-term outlook for our business and our desire to return capital to our stockholders, we determined to initiate the Offer in order to use a portion of the cash generated in the sale of Optometrics and EMF to purchase shares of our common stock from our stockholders." The 2021 letter noted, "For 2021, RMD’s products generated approximately $1.1 million in revenue. We are excited about some of the current and future product possibilities within RMD and <i>the prospect does exist for this revenue stream to grow substantially</i> but it is difficult to predict either timing or amount" (emphasis mine). The RMD subsidiary does have a new president as of Apr 2022 and maybe he can drive that division to push out more products. <div><br /></div><div>Given the 9months numbers from after the sale, they're on track to do $38m. See my marked up spreadsheet below with my guesstimates in yellow. The only things we know about divisional split in the huge 2021 year are a couple quotes from that report, "Performance for the fiscal year ended September 30, 2021 was at record levels across all divisions." and "RMD’s products generated approximately $1.1 million in revenue". </div><div><br /></div><div>Here I'll assume the RMD growth was slight but not off the charts. Call this one of the bookend assumptions since we know in 2021 all divisions had record highs so this would be around the low end of RMD growth. Here we see optics revenue and gross margin growth was most of what drove the big 2021 year. Maybe this makes sense if they were then able to sell and get a good price for 2 of the 4 optics divisions. Based on this assumption they would have got about 2x sales. If this whole company is worth 2x sales then the tender offer should be more like $6-$7. </div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj8sUVLvMpBcqVlQ71k9a0MNkJQ1Y7T17Mk4CnrEbH0GVRyDEjPeQkg8ILZ3MJ9ivf_jhqCKDfNiI33WbfR70tI0mL7KW5GHIqSB00cmb_apabSkyqFhEnZAOiSGxTnD_M1UrohkZbT__K4m-VxC59lPcFgvTCW-tloZqo2PmZ2jbe88Nv8HC7Tt3p66A/s1424/Screen%20Shot%202022-11-09%20at%2011.32.55%20PM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="532" data-original-width="1424" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj8sUVLvMpBcqVlQ71k9a0MNkJQ1Y7T17Mk4CnrEbH0GVRyDEjPeQkg8ILZ3MJ9ivf_jhqCKDfNiI33WbfR70tI0mL7KW5GHIqSB00cmb_apabSkyqFhEnZAOiSGxTnD_M1UrohkZbT__K4m-VxC59lPcFgvTCW-tloZqo2PmZ2jbe88Nv8HC7Tt3p66A/w640-h240/Screen%20Shot%202022-11-09%20at%2011.32.55%20PM.png" width="640" /></a></div><br /><div>Another assumption could be if RMD had higher growth. This leaves us with a remaining company company that's more depended on RMD but again it looks like they got about 2x sales for the sold divisions. </div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiuhkm2G6pqMlYUAgD8nJzltOsEgkwmPqArW-XOgKFzIHA9ob1GIFAplcVESijCFfscLtQ-6B_cSGk8K47mVh75s_AxhmEz9lmLCHWI4qK3MCNt_rhN4Ikywuxl96H7UWssYFWhW_SOg5Tvpg8j1l3wIC4NoLSXW6JQ4g-_HiYu7XnN-H2PPShLaCVu-g/s1426/Screen%20Shot%202022-11-09%20at%2011.46.41%20PM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="534" data-original-width="1426" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiuhkm2G6pqMlYUAgD8nJzltOsEgkwmPqArW-XOgKFzIHA9ob1GIFAplcVESijCFfscLtQ-6B_cSGk8K47mVh75s_AxhmEz9lmLCHWI4qK3MCNt_rhN4Ikywuxl96H7UWssYFWhW_SOg5Tvpg8j1l3wIC4NoLSXW6JQ4g-_HiYu7XnN-H2PPShLaCVu-g/w640-h240/Screen%20Shot%202022-11-09%20at%2011.46.41%20PM.png" width="640" /></a></div><br /><div>I really wish I could follow the money but we just don't know what insiders will do. It's kind of weird the company is buying back 8.0m shares when the insiders hold 7.99m. They could end up owning the whole company alone or sell completely out. The conspiracy theorist in me wants to believe the company is trying to dupe us into take the tender so they can keep the best parts of the company that are rocketing forward on the back of the 2021 rocket ship. They sold off a portion for 2x sales so who's to say they can't do it again.</div><div><br /></div><div>But maybe they just got an offer they couldn't refuse and the 2x sales multiple is unlikely to ever be seen again. It would be abnormal for the company's private sale price to be like 6x the stock price. And it's been a long time since the stock was this high. </div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEir5EaqphklUkkB-vpmmrL1cdmp9lurzus97PIgUGcNsVv4nybal0e4pIW-_o8IWiKy_77LI10uOq10hpyFMNtnVjoXgGIeWnTclY_HppRZ1a-9DPEn_PKlyIcjZn68GLTAB-GR0uMFKsqNF8weuHGmerxSsDjUq1ppdGRr12bclXd4WSZLJOk4f7J3rA/s1168/Screen%20Shot%202022-11-09%20at%2011.54.52%20PM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="680" data-original-width="1168" height="233" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEir5EaqphklUkkB-vpmmrL1cdmp9lurzus97PIgUGcNsVv4nybal0e4pIW-_o8IWiKy_77LI10uOq10hpyFMNtnVjoXgGIeWnTclY_HppRZ1a-9DPEn_PKlyIcjZn68GLTAB-GR0uMFKsqNF8weuHGmerxSsDjUq1ppdGRr12bclXd4WSZLJOk4f7J3rA/w400-h233/Screen%20Shot%202022-11-09%20at%2011.54.52%20PM.png" width="400" /></a></div><br /><div>The question is what do we have left in DYSL and how likely are we to see a 2x sales multiple again. Hard to say. I'm not sure this exercise got me any closer to a decision. I'll probably tender at least some.</div><div><br /></div><div>--Dan</div><div>disclosure: long DYSL for now</div><br /><br />Subscribe to all NoNameStocks posts here: <a href="http://www.nonamestocks.com/2022/04/noname-annual-performance-2021-2022.html#">https://forms.feedblitz.com/erd</a><br /></div>Dan Schumhttp://www.blogger.com/profile/05728696891530868697noreply@blogger.com1tag:blogger.com,1999:blog-754894216207950592.post-45634872192599435592022-10-31T11:28:00.003-07:002022-10-31T11:28:38.937-07:00Deleted Twitter<p>Just a quick note to all my followers out there that I've deleted my Twitter account. Thanks for reaching out to those who asked if everything is OK. There is no problem and I'm not changing anything in my stock and blog world. I just deleted my account once the new ownership took over since I do not want to support them or be associated in any way.</p><p>Please continue to contact me through my email nonamestocksdan@gmail.com and I'll keep posting as always right here. Stayed tuned for more half dead companies with potential to be not completely dead lol</p><p>--Dan</p>Dan Schumhttp://www.blogger.com/profile/05728696891530868697noreply@blogger.com8tag:blogger.com,1999:blog-754894216207950592.post-19840302260328980882022-09-27T16:36:00.012-07:002022-10-30T19:57:19.803-07:00Brokerages to Buy Dark Stocks<p> I wish I had a rosy picture to paint you but alas we have reality to deal with. A year ago in Sept 2021 the <a href="http://www.nonamestocks.com/2021/07/brokerages-new-sec-rule-and-podcast.html">new SEC rule</a> went into place, resulting in the destruction of dark stock trading. Every single online brokerage I know of in the US stopped allowing buys in any dark stocks. </p><p>This post is a summary of the few brokerages that still allow you to buy non-filing dark stocks. </p><p>If anyone has found a solution please comment or send me an email. <span></span></p><a name='more'></a>Unfortunately I don't have a good solution and personally I cannot buy anything non-filing. All the online brokerages just threw up there hands and said "that's it, we're out" and OTC Markets has become the arbiter of what we're allowed to buy. <p></p><p>I have all my accounts with Schwab which allows the following based on SEC status and OTC Markets tier:</p><p></p><ul style="text-align: left;"><li>I can buy or sell online</li><ul><li>SEC Registered</li><li>OTCQB</li><li>OTCQX</li><li>Pink Current Information</li></ul><ul><li>Pink Limited Information</li></ul><li>I can sell only. No buys allowed</li><ul><li>Expert Market</li><li>Grey Market</li></ul></ul><p></p><p>Those last two bullet points are the non-filers I cannot buy anymore. It's super sad as today I would not be able to buy two of my all time biggest winners from the past <a href="http://www.nonamestocks.com/search/label/HEMA">HEMA</a>, <a href="http://www.nonamestocks.com/search/label/SIMA">SIMA</a>. </p><p>Personally I am really burnt out on the SEC and brokerages. I haven't spent much time trying to find a solution other than talking to a lot of people. I know a few who contacted every brokerage they could find similar to <a href="http://www.nonamestocks.com/2016/10/brokerage-firms-otc-markets-and-dark.html">what I did in 2016</a>. </p><p>Below is the list of options I have heard are available and this list is by no means exhaustive. If you know of more please comment or email me and I'll update. If you are interested I suggest you reach out to these brokerages and ask all the necessary questions. </p><p></p><ul style="text-align: left;"><li>Discount online brokerages</li><ul><li><a href="https://www.questrade.com/home">Questrade</a></li><ul><li>Only allowed if you are not be located in the United States. </li><ul><li>I've heard from several people in other countries they are allowed to open accounts and trade but people in the US are for some reason not allowed.</li></ul><li>To my knowledge this is the only discount online brokerage that allows non-filing stock buys</li></ul></ul><li>Full service brokerages</li><ul><li>These I personally do not want to use mainly because I'd have to call in orders and I hate picking up the phone. These also have higher fees and account minimums. Some may require accredited investor status. Some have commission minimums per quarter or year.</li><li><a href="https://www.robotti.com">Robotti</a></li><li><a href="https://centerpointsecurities.com">Centerpoint Securities</a></li><li><a href="https://www.cald.com">Caldwell Sutter</a></li><li><a href="https://www.janney.com">Janney</a></li><li><a href="https://www.hilltopsecurities.com">Hilltop Securities</a></li><li><a href="https://www.canaccordgenuity.com">Canaccord Genuity</a></li><li><a href="https://www.odeoncap.com">Odeon Capital</a></li></ul></ul><div><br /></div>--Dan<br />disclosure: I hate the SEC<p><br /></p><p>Subscribe to all NoNameStocks posts here: <a href="http://www.nonamestocks.com/2022/04/noname-annual-performance-2021-2022.html#">https://forms.feedblitz.com/erd</a></p>Dan Schumhttp://www.blogger.com/profile/05728696891530868697noreply@blogger.com17tag:blogger.com,1999:blog-754894216207950592.post-38378473193217872602022-08-10T10:41:00.002-07:002022-10-30T19:57:01.780-07:00Keeping the Faith in BDRL<p>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?</p><p><a href="https://www.blondertongue.com">Blonder Tongue Laboratories</a> (<a href="https://www.otcmarkets.com/stock/BDRL/overview">BDRL</a>) has no shortage of issues but with a market cap of $1.6m and the stock at an all time low, I'm a buyer. </p><p><span></span></p><a name='more'></a><p></p><p>I've told this story <a href="http://www.nonamestocks.com/2017/04/tcco-betting-on-survival.html">before with TCCO</a>. 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?</p><p>I like to go where others won't. Results will only be different if the inputs or process are different.</p><p>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...</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjOlxVVeUknB-QVhAVDCwHbl3kXzmKtqTvN20EXQS0qESpEqjT2qeT3ZL092e7kvdEFi2I_fLQsKdFvq10vJASl9msX9CrJMX0-Zu5XK-pnH_NWf7V4DJfays7AljB8a4pSDUvxm74yJF_dV2h8rfKVewoMPBsFb3qyH9slxKxJGbCxe7RCKX12KG4EvA/s1144/Screen%20Shot%202022-08-10%20at%208.55.11%20AM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="640" data-original-width="1144" height="224" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjOlxVVeUknB-QVhAVDCwHbl3kXzmKtqTvN20EXQS0qESpEqjT2qeT3ZL092e7kvdEFi2I_fLQsKdFvq10vJASl9msX9CrJMX0-Zu5XK-pnH_NWf7V4DJfays7AljB8a4pSDUvxm74yJF_dV2h8rfKVewoMPBsFb3qyH9slxKxJGbCxe7RCKX12KG4EvA/w400-h224/Screen%20Shot%202022-08-10%20at%208.55.11%20AM.png" width="400" /></a></div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Here's the last 10 years. I've bought and sold this stock a couple of times. First buying in early 2016 just around $0.40 and selling out in those spikes you see around 1.50-2. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh5Wd05KDfxOyNOFE-Q4Q8XDl84xdU_VrdvyfY6QmZGJXonYCCRE4Asyi1F2Zn7J10B7kML6wJOkxhAZM0wno9qmeLKJsQO6WErHuIVvH2MDxPndwfThz8Fo9uI-sLjNMjVYWYV5EIXk9QecnFiyV3dHs-9NT7zDNS03gbRhFG3sCInTAIpDNr2uGol4g/s1152/Screen%20Shot%202022-08-10%20at%209.06.52%20AM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="638" data-original-width="1152" height="221" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh5Wd05KDfxOyNOFE-Q4Q8XDl84xdU_VrdvyfY6QmZGJXonYCCRE4Asyi1F2Zn7J10B7kML6wJOkxhAZM0wno9qmeLKJsQO6WErHuIVvH2MDxPndwfThz8Fo9uI-sLjNMjVYWYV5EIXk9QecnFiyV3dHs-9NT7zDNS03gbRhFG3sCInTAIpDNr2uGol4g/w400-h221/Screen%20Shot%202022-08-10%20at%209.06.52%20AM.png" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: left;">And the past year. I was completely out of the stock until it dropped down to a dollar in Oct 2021. I've been buying ever since as it continues to fall through support, now sitting at $0.12.</div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgPuyWhGK07mzQjl-xIIWr83Lgn668n-v2_SQbKFr2y4kXHW704RFhbYwWcV0cKTAQGdoY17ta5PsKpMR5UDQ2PZYNfAh42Q46uS7wA2jNNecOiSVP3d5j4Oe3NunyAgx1YhHrrcsWvZOtbFT0C3_QpOJfJEjm4JEEhXkrXcopdZ8ax4S7ZICr5TdqBfw/s1168/Screen%20Shot%202022-08-10%20at%209.11.36%20AM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="680" data-original-width="1168" height="233" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgPuyWhGK07mzQjl-xIIWr83Lgn668n-v2_SQbKFr2y4kXHW704RFhbYwWcV0cKTAQGdoY17ta5PsKpMR5UDQ2PZYNfAh42Q46uS7wA2jNNecOiSVP3d5j4Oe3NunyAgx1YhHrrcsWvZOtbFT0C3_QpOJfJEjm4JEEhXkrXcopdZ8ax4S7ZICr5TdqBfw/w400-h233/Screen%20Shot%202022-08-10%20at%209.11.36%20AM.png" width="400" /></a></div><br /><div class="separator" style="clear: both;">What a drop. On <a href="https://www.sec.gov/ix?doc=/Archives/edgar/data/0001000683/000121390021064761/ea152171-f8k_blondertng.htm">Dec 10, 2021 the company announced</a> "NYSE Regulation has determined to commence proceedings to delist the common stock..." The stock gapped down 30% immediately then 6 months later opened 40% down as <a href="https://www.sec.gov/ix?doc=/Archives/edgar/data/0001000683/000121390022034892/ea161989-8k_blonder.htm">BDR put out a press release</a> confirming the move to OTC would happen in 3 days. </div><div class="separator" style="clear: both;"><br /></div><div class="separator" style="clear: both;">But BDRL has not changed anything in the way they file. They still put out 8k's and form 4's and quarterlies. They trade on the OTCQB tier which requires an audit. They even still do quarterly conference calls with <a href="https://finance.yahoo.com/news/blonder-tongue-schedules-conference-call-203000409.html">one scheduled 5 days from now</a>. I've been buying. NYSE vs OTC is not worth that drop. It's the same company. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Some numbers: </div><div class="separator" style="clear: both; text-align: left;"><ul style="text-align: left;"><li>13.3m shares outstanding</li><li>market cap $1.6m with latest stock price $0.12</li><li>book value $2.4m</li><li>TTM revenue $15.8m</li><li>TTM net income -$0.65m</li><ul><li>without PPP loan forgiveness stuff this would be closer to -$3m</li></ul></ul></div><div class="separator" style="clear: both;">Blonder Tongue is losing money and the <a href="https://www.otcmarkets.com/filing/html?id=15794098&guid=2P1-ke7S2GXCJth">latest 10Q</a> spells out the risk, "there still exists substantial doubt about the Company’s ability to continue as a going concern." But how many 12 cent stocks hold quarterly conference calls? <a href="https://www.blondertongue.com">This website here</a> does not look like a $1.6m market cap to me. </div><div class="separator" style="clear: both;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEid0mZaId6Jagig4cvRJmpwhNyvlxBfqXs99RKnVwK7e54cVWEZxm8Y5t7aN9ioIDR0e0qQyzjojUcU5rxZk9lkKJcgAmFDsGaGNNSc3sGM185kihr7wKuinSnyARfyykCvFqBPaD-8EbtVhlFBDZWWJhYKPGbnK_zm5oEQjtf-eS63cgL0KHWqQ7iqLQ/s2868/Screen%20Shot%202022-08-10%20at%209.56.00%20AM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1552" data-original-width="2868" height="216" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEid0mZaId6Jagig4cvRJmpwhNyvlxBfqXs99RKnVwK7e54cVWEZxm8Y5t7aN9ioIDR0e0qQyzjojUcU5rxZk9lkKJcgAmFDsGaGNNSc3sGM185kihr7wKuinSnyARfyykCvFqBPaD-8EbtVhlFBDZWWJhYKPGbnK_zm5oEQjtf-eS63cgL0KHWqQ7iqLQ/w400-h216/Screen%20Shot%202022-08-10%20at%209.56.00%20AM.png" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhrDjDKKo3Hm0KfCL5C35u6xZzI2XOcK_ws2eVc0QYfbL0SZUb_rZiqKKc0XhEMmHufpcKoidb1zEWAKRRbOmpao33m3z2KCqMKAYOT4gDT9H2Jykv46wbhzMPtvMmBW5ATnzzCywq-sdAu2kRNqXDO_2x8IAbtDG0uDPk7zX-z5vVopprPkCb3k_LPHQ/s2874/Screen%20Shot%202022-08-10%20at%2010.20.37%20AM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1604" data-original-width="2874" height="224" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhrDjDKKo3Hm0KfCL5C35u6xZzI2XOcK_ws2eVc0QYfbL0SZUb_rZiqKKc0XhEMmHufpcKoidb1zEWAKRRbOmpao33m3z2KCqMKAYOT4gDT9H2Jykv46wbhzMPtvMmBW5ATnzzCywq-sdAu2kRNqXDO_2x8IAbtDG0uDPk7zX-z5vVopprPkCb3k_LPHQ/w400-h224/Screen%20Shot%202022-08-10%20at%2010.20.37%20AM.png" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEivFfGHN3qbgjDoNfMnF7kxJ2jfZqaJyrYtN3Imwche4T_2Rtb7ZCO6n2g8tLPfqIbJMnTXDH9sH8FoaYcVjTsTxhQRvzyHTwR7ql2f96-t-lrDaV3e_faf2FNp0ffIce-WbbpicWw7VtUlDxPh5eNfZ8srDIbXfXdifcVxwWMdBhLQEI3hhsQ1MVOS0Q/s1106/Screen%20Shot%202022-08-10%20at%2010.25.08%20AM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1106" data-original-width="478" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEivFfGHN3qbgjDoNfMnF7kxJ2jfZqaJyrYtN3Imwche4T_2Rtb7ZCO6n2g8tLPfqIbJMnTXDH9sH8FoaYcVjTsTxhQRvzyHTwR7ql2f96-t-lrDaV3e_faf2FNp0ffIce-WbbpicWw7VtUlDxPh5eNfZ8srDIbXfXdifcVxwWMdBhLQEI3hhsQ1MVOS0Q/s320/Screen%20Shot%202022-08-10%20at%2010.25.08%20AM.png" width="138" /></a></div><br /><div class="separator" style="clear: both;">The company is trying to turn it around. The CEO started in 2018 as did the CTO. They got one new board member in 2018 and two others in 2020. In <a href="https://www.sec.gov/ix?doc=/Archives/edgar/data/0001000683/000121390021065213/ea152344-8k_blonder.htm">Dec 2021 the company adjusted</a> executive pay with 5-10% reductions plus 5-10% coming as stock. Starting in 2019 the <a href="https://www.blondertongue.com/investor-relations/stock-information/#investor-annual-report">president's letter inside the annual report</a> began referencing the efforts:</div><blockquote>"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"<br /><br />"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"<br /><br />"In January 2020, the Company began implementing a strategic plan to improve operating results and increase shareholder value. This plan consists of:<br /><br /> ○ Adapting operating expenses in line with expected revenue and income levels<br /><br /> ○ Focusing R&D on short-term high confidence opportunities with compelling ROI<br /><br /> ○ Expanding sales and marketing efforts directly to service operators<br /><br /> ○ Streamlining manufacturing operations and simplifying product offerings, and<br /><br /> ○ Increasing gross margins."</blockquote><div class="separator" style="clear: both; text-align: left;">I imagine the company will have to raise money somehow. They've been adjusting loan agreements and arranging financing. They are coming out with new products and shifting around the organization. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">With this stock I see a single question: will BDRL survive. Either they go into bankruptsy or not. The company has been around for 70 years and publicly traded almost 30. My bet is the stock trades considerably higher at some point over the next 5 or 10 years. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">--Dan</div><div class="separator" style="clear: both; text-align: left;">disclosure: long BDRL</div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Subscribe to all NoNameStocks posts here: <a href="http://www.nonamestocks.com/2022/04/noname-annual-performance-2021-2022.html#">https://forms.feedblitz.com/erd</a></div>Dan Schumhttp://www.blogger.com/profile/05728696891530868697noreply@blogger.com11tag:blogger.com,1999:blog-754894216207950592.post-78931928610452511272022-04-19T15:14:00.003-07:002022-04-19T15:14:46.358-07:00QDLC Finally Comes Through<p>I first wrote up <a href="https://www.otcmarkets.com/stock/QDLC/overview">QDLC</a> in <a href="http://www.nonamestocks.com/2015/10/qdlc-at-1x-earnings.html">2015</a> with the stock at $0.20. It was dark and low, forgotten by the market. </p><p>The other day <a href="https://www.otcmarkets.com/stock/QDLC/news/Quadlogic-Joins-Metergy-Solutions?id=351296">a merger was announced for $2 per share</a>. Unfortunately I can't buy more as the stock is on the Expert Market and I don't have an account that allows buys there. Let's close the book on this one.<span></span></p><a name='more'></a><p></p><p>When I first bought into QDLC, they had not filed a report in several years. The stock was clearly cheap versus their outdated numbers. But one had to wonder if we'd ever hear from them again and would anybody care. </p><p>I try to buy what is cheap and left for dead then wait. Watching while doing nothing is a large part of my strategy. The trick is watching closely, following the news, looking for that change which may indicate prosperity is on the way. </p><p><a href="http://www.nonamestocks.com/2017/06/activism-and-possible-sale-of-qdlc.html">In 2017 a shareholder group started a proxy battle</a>. Fed up with the poor stock performance they wanted to force change. Their goal was sell off the company piece by piece and reward shareholders for years of patience. At the time they thought it may take a couple years. This is exactly the type of change I hope for.</p><p>Quadlogic illustrates two big points of my strategy: patience and position sizing. </p><p>I think one of my biggest edges is my patience. I will hold stocks for years through good and bad as long as I see potential for a big win in the future. Long term charts show the way while patience and optimism light the path. </p><p>I own 50-60 stocks at any given time and I try to spread them out because I don't know which will really work out. This is how I try to capture all the opportunity I see but as my portfolio grows larger it can be harder to make the wins matter and that is the case with QDLC. You see I was right about QDLC. More than once I told people that QDLC is the type of stock you will wake up one day and it has jumped a couple hundred percent. But in the end this win will not move my portfolio because I did not own enough of it. </p><p>Over the years I bought more QDLC as news went well. In 2017 when the concerned shareholders started a proxy battle I bought more. I bought again in 2019 as the company <a href="http://www.nonamestocks.com/2019/04/qdlcs-potential-has-increased.html">won a lawsuit</a> worth twice the market cap. Problem is I sold most of my QDLC in 2020 to buy a house. It was just bad luck the QDLC was in my taxable account which I was liquidating first and then I feel asleep at the wheel. </p><p>One thing I do often is look through my portfolio and check the position sizes. I try to bump up those that are too small but it's difficult since often times they're not in a range I want to buy more and I don't always have cash to invest. Certainly I need to do a better job with this. </p><p>Below you can see the journey. On to the next one!</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhWugYZIgzjy_W6HBUZSVdaOBp9fmNSAQgJmehlebdBEzoIUqvuu7Ab5erkdGJvlx2vFr0J-Knq9XaXFSAFKkm-o7e2s2NHobsbCgHYbUKHn8x81WYsNntKFV-yIZNUVXxwFzHpYWj3pO4BzsuMzZL95un_hC8vWDA44O05433xBQ7WjcJkkVEeUhqNXg/s1172/Screen%20Shot%202022-04-19%20at%203.05.13%20PM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="684" data-original-width="1172" height="374" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhWugYZIgzjy_W6HBUZSVdaOBp9fmNSAQgJmehlebdBEzoIUqvuu7Ab5erkdGJvlx2vFr0J-Knq9XaXFSAFKkm-o7e2s2NHobsbCgHYbUKHn8x81WYsNntKFV-yIZNUVXxwFzHpYWj3pO4BzsuMzZL95un_hC8vWDA44O05433xBQ7WjcJkkVEeUhqNXg/w640-h374/Screen%20Shot%202022-04-19%20at%203.05.13%20PM.png" width="640" /></a></div><br /><p><br /></p><p>--Dan</p><p>disclosure: long QDLC</p><p><br /></p>Subscribe to all NoNameStocks posts here: <a href="http://www.nonamestocks.com/2022/04/noname-annual-performance-2021-2022.html#">https://forms.feedblitz.com/erd</a>Dan Schumhttp://www.blogger.com/profile/05728696891530868697noreply@blogger.com1tag:blogger.com,1999:blog-754894216207950592.post-16184019542169228392022-04-16T18:05:00.005-07:002022-04-16T22:21:09.254-07:00NoName Annual Performance 2021-2022<p>This was a year of the ball bouncing the wrong way. I am up 1.4%, giving me a 43.8% CAGR since I bought my first stock 9 years ago. </p><p>You can read my past annual performance posts <a href="http://www.nonamestocks.com/p/portfolio-performance.html">here</a>. <span></span></p><a name='more'></a><span></span><p></p><p><br /></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhXYqsCd0MOQ77TneCNmn4iaVDdSqBRD1nDGle-_Xg__2PH1Jcx8SXCJsiJPF8bh55IYYhVmWo2kG1bt399go30clDbvCWHfaDDX4d_21oWIOlXl7PFzpBClijXdh9QlarYz4LJzFvLM1bBj-msh36QvSZWx8h6D1JDGp7QsXULvCm2SonrzU1xGHZP1Q/s442/Screen%20Shot%202022-04-16%20at%208.02.04%20AM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="442" data-original-width="398" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhXYqsCd0MOQ77TneCNmn4iaVDdSqBRD1nDGle-_Xg__2PH1Jcx8SXCJsiJPF8bh55IYYhVmWo2kG1bt399go30clDbvCWHfaDDX4d_21oWIOlXl7PFzpBClijXdh9QlarYz4LJzFvLM1bBj-msh36QvSZWx8h6D1JDGp7QsXULvCm2SonrzU1xGHZP1Q/w360-h400/Screen%20Shot%202022-04-16%20at%208.02.04%20AM.png" width="360" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiYx3dk38PxfCCKSk_vAmQyEkPLdcnTMIdYTwGhl3hppXq1PNImAQJvspuO2kNhnumMGSMB_SOAq3omZVY47imv_2Gnr0xuK9HgyLOuVCu3lEK7jrWfsUs4OkD9jitofwGt8rYD7HfqvLNUqLReviXM98RErEE_O2yVTHBtX-m6yTSOBHC2UFDpXE3GBw/s910/Screen%20Shot%202022-04-16%20at%208.11.13%20AM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="566" data-original-width="910" height="398" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiYx3dk38PxfCCKSk_vAmQyEkPLdcnTMIdYTwGhl3hppXq1PNImAQJvspuO2kNhnumMGSMB_SOAq3omZVY47imv_2Gnr0xuK9HgyLOuVCu3lEK7jrWfsUs4OkD9jitofwGt8rYD7HfqvLNUqLReviXM98RErEE_O2yVTHBtX-m6yTSOBHC2UFDpXE3GBw/w640-h398/Screen%20Shot%202022-04-16%20at%208.11.13%20AM.png" width="640" /></a></div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">A reminder on this performance: this is my real portfolio consisting of most of my net worth. I invest all my family's savings and retirement in these little stocks and below you can see my portfolio. I've talked about my journey into stocks on <a href="http://www.nonamestocks.com/search/label/Podcast">a few podcasts</a> and here's the very short version. I started reading finance books around Christmas 2012 and got into stocks a few months later. I end my fiscal year on April 17 every year because that's when I bought my first stock. This performance is since the very beginning. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Nine years ago I had just wanted to learn more about finance and prepare my family for the unknown. My goal was to make 12% per year and beat the market. Since then my portfolio has grown larger than I imagined possible, giving us a healthy cushion. These little stocks have bought us a house and given peace of mind for the future. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">I'm 41 now, with an engineering career of almost 20 years. This year's lower performance has been a reminder of why I still work my day job but I can't help but dream of the future. I always figured I'd work engineering until my 60s but now we are within striking distance of being able to live off stocks only. If I were single I would've pulled the trigger already but with my family we're not quite there.</div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">All that being said, my goals have changed. If I can get a couple more years of good performance in line with my CAGR then I think I can move to stock investing full time. We will see what happens.</div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">My overall strategy works when the winners get big enough to drown out the losers and that just didn't happen this year. My buyouts and movers weren't sized large enough. Diversification saved me from the losers.</div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Here you can see my portfolio allocation. </div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi9o-udJpiQutVos6rhzT3S3fSv0nI-hRQ8fifAOFuwXyZFlGHE_ws8xEOpcaZtGI2ubscUbOJ8gES1iQybmILs8KS8oueSxDfor3h0vY8D_0EPWcjGmlSRIwK3i2njV4uj_-yjUtMtegmNPYf7P9CQPpyQgNCDxnXXzuTNvF5i7HkhpvK4SaAY62aQoA/s1494/Screen%20Shot%202022-04-16%20at%209.25.26%20AM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="886" data-original-width="1494" height="380" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi9o-udJpiQutVos6rhzT3S3fSv0nI-hRQ8fifAOFuwXyZFlGHE_ws8xEOpcaZtGI2ubscUbOJ8gES1iQybmILs8KS8oueSxDfor3h0vY8D_0EPWcjGmlSRIwK3i2njV4uj_-yjUtMtegmNPYf7P9CQPpyQgNCDxnXXzuTNvF5i7HkhpvK4SaAY62aQoA/w640-h380/Screen%20Shot%202022-04-16%20at%209.25.26%20AM.png" width="640" /></a></div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">On to the charts!</div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;"><b><u>MINM</u></b></div><div class="separator" style="clear: both;">Dollar-wise this is my biggest loser ever. I first wrote up this stock almost <a href="http://www.nonamestocks.com/2016/05/i-missed-zooms-big-move.html">6 years ago when it was ZMTP</a>. I first heard of ZMTP/MINM in 2015 around $0.75 with change in the air. The little modem maker ZMTP had earned a coveted contract with Motorola. Since then I've bought a few times. As Jeremy Hitchcock <a href="https://www.otcmarkets.com/filing/html?id=14323018&guid=xDewkHFvU4oFdth">took control of the company in 2020</a> my excitement grew. He had sold his prior software company, <a href="https://fortune.com/2016/11/21/oracle-paid-600m-to-700m-for-dyn/">Dyn, to Oracle for $600M</a> and now he owned half of ZMTP. He brought in his team and remade the board. His plan was transform the hardware focused ZMTP into a combined software/hardware MINM focused on the growing internet connectivity and security market. Artificial intelligence and software margins and Saas, oh my. Change, motivation, and potential colliding which you know I like. I bought more. They <a href="https://www.globenewswire.com/news-release/2020/11/13/2126169/0/en/Zoom-Telephonics-and-Minim-to-Merge-Combining-Connectivity-Hardware-With-AI-Driven-Cloud-Software.html">announced</a> ZMTP's purchase of Hitchcock's private company Minim to bring in their "leading AI-driven WiFi management and IoT security platform". The stock symbol changed and they uplisted to NASDAQ. All change and lots of potential with hopeful movement into a bright future. </div><div class="separator" style="clear: both;"><br /></div><div class="separator" style="clear: both;">Well my mistake was getting too excited before results were available. I bought a lot at 3 and above in 2021. The company sold shares. Profit has eluded and those high software margins have not overpowered costs. Now the stock has fallen all the way down to support. Share count is too high but the potential is there. I still hold my shares and look forward to the future.</div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiOTIft0-clXPyURe-bQvoTkyjBF8QGc160q-84-Iy7Vbu61pmKB-6RSluZXRTkfN4Eqcszf9ZaCNRV55DvHyj-lPOPKTPxIkZJj_u8EqfWChrk29V2ftd_9SkjkNNACb21xWhyWSA-JUyjxdMduH-49mc4V5eIvHdzmFSG6Ez0tnBK-r9jjnCLMngAFg/s1172/Screen%20Shot%202022-04-16%20at%208.50.49%20AM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="684" data-original-width="1172" height="374" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiOTIft0-clXPyURe-bQvoTkyjBF8QGc160q-84-Iy7Vbu61pmKB-6RSluZXRTkfN4Eqcszf9ZaCNRV55DvHyj-lPOPKTPxIkZJj_u8EqfWChrk29V2ftd_9SkjkNNACb21xWhyWSA-JUyjxdMduH-49mc4V5eIvHdzmFSG6Ez0tnBK-r9jjnCLMngAFg/w640-h374/Screen%20Shot%202022-04-16%20at%208.50.49%20AM.png" width="640" /></a></div><br /><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;"><b><u>DYSL</u></b></div><div class="separator" style="clear: both; text-align: left;">Let me wash the taste of that loss out my mouth with a winner. I've <a href="http://www.nonamestocks.com/search/label/DYSL">written up DYSL</a> a couple times and owned the stock for a few years. As with many of my stocks I've bought more as time went on. I bought in 2019 around a dollar. They <a href="http://www.nonamestocks.com/2019/09/catching-dysl-de-reg-drop.html">reduced share count by 16%</a> with a reverse split to de-register from the SEC. The stock dropped below a buck and I bought more. They reported good numbers early in 2021 and I bought more. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Unfortunately DYSL does not file publicly. After de-registering from the SEC they stopped posting reports online . They still report annual numbers to shareholders and quickly reply to emails. After the <a href="http://www.nonamestocks.com/2021/07/brokerages-new-sec-rule-and-podcast.html">SEC announced plans</a> to stop trading in dark stocks I reached out to DYSL with my concerns but they don't care. DYSL says they'll keep on doing what they are doing, in the darkness. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both;">It's really too bad because the stock would be higher. In Dec 2021 the company announced record results. $53M revenue, $6.3M operating income. The company sold two divisions and has $30M in cash. They expect revenue in the range of $35M next year. With a share count of 14.9M that sounds like a $4 stock to me. </div><div class="separator" style="clear: both;"><blockquote>This exciting bit was in the Dec 2021 report as well: <br /><br />"it seems likely that Dynasil will seek to reward stockholders by returning some capital to stockholders, though the portion of the cash proceeds which we may return has not been decided nor has the manner or timing, if in fact we proceed in this course of action. Our current thinking is that Dynasil may initiate some sort of tender offer in the first or second calendar quarter 2022 whereby it gives stockholders the opportunity to sell shares back to the company for a fixed offer price to be determined by Dynasil."</blockquote></div><div class="separator" style="clear: both;">The stock doubled and now we are back to waiting. I wish it weren't on the expert market but what can you do.<br /></div><div class="separator" style="clear: both;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEggwX-QZHkTlrxcTU5mgwzKsL1KNZCFKA72cQdVqkDzifWcnRB5WdLIQeSfgsDh9gSuxDxux44KdfZrvvDJx-OJm2UlI-DY3eSjrJpIFzB7BIsKx3-sUuSLN5G3IxfmMd2WTOe7jTVQoojetVGgKHAxw7HMmrwGQdmcUhFKkbLqH0JXfNSqLU1VtQdXTA/s1170/Screen%20Shot%202022-04-16%20at%2011.03.10%20AM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="688" data-original-width="1170" height="376" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEggwX-QZHkTlrxcTU5mgwzKsL1KNZCFKA72cQdVqkDzifWcnRB5WdLIQeSfgsDh9gSuxDxux44KdfZrvvDJx-OJm2UlI-DY3eSjrJpIFzB7BIsKx3-sUuSLN5G3IxfmMd2WTOe7jTVQoojetVGgKHAxw7HMmrwGQdmcUhFKkbLqH0JXfNSqLU1VtQdXTA/w640-h376/Screen%20Shot%202022-04-16%20at%2011.03.10%20AM.png" width="640" /></a></div><br /><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;"><b><u>TCOR</u></b></div><div class="separator" style="clear: both; text-align: left;"><a href="http://www.nonamestocks.com/search/label/TCOR">TCOR</a> is another stock punished by the SEC's rule change. Just look at the one year chart below. SEC change went into effect in Sept 2021, pushing TCOR to the expert market where most brokerages will only allow sales. I can't buy more. I've talked with others who would love to buy in but the liquidity is just not there. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjjqS88-QKmnjiEIW1zHOulwxC53pWrRA_dsnMqRvY5LYDfvUlgh0zgYy5fThTqVdQk7iFnaDllZoCGX-b_HvNbyv5_sYjlvuARTeRe_xkJXpFV1VsPIFayxCx2eN8OS_CxSSBMB69ppNm2ETHT08fo56Ybs6DEAJaqPhU_JbU2DqJ0o6G6Yd3pfgmcpw/s1168/Screen%20Shot%202022-04-16%20at%203.35.57%20PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="686" data-original-width="1168" height="376" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjjqS88-QKmnjiEIW1zHOulwxC53pWrRA_dsnMqRvY5LYDfvUlgh0zgYy5fThTqVdQk7iFnaDllZoCGX-b_HvNbyv5_sYjlvuARTeRe_xkJXpFV1VsPIFayxCx2eN8OS_CxSSBMB69ppNm2ETHT08fo56Ybs6DEAJaqPhU_JbU2DqJ0o6G6Yd3pfgmcpw/w640-h376/Screen%20Shot%202022-04-16%20at%203.35.57%20PM.png" width="640" /></a></div><br /><div class="separator" style="clear: both; text-align: left;">A year ago the stock pushed up to a dollar along the back of strong numbers and the lumber rise. Investors sold as they came to terms with the reality of the SEC rule. Look at the volume vanish! Recently the company reports annual EPS of $0.18 with book value of $1.84 and revenue of $3.75. Yet the stock sits at $0.46 because so few people can buy it. I hold my shares and now I wait for the next set of annual numbers in a year. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;"><b><u>Dark Stocks</u></b></div><div class="separator" style="clear: both; text-align: left;">As of Sept 2021 I had about 20% of my portfolio in dark stocks that do no comply with the SEC's rule change. I did nothing in response to the SEC rule change. Perhaps I should've sold some of these but I have a hard time selling what I think could go up. I still think they'll come back somehow so here I sit. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">The "expert market" barely functions as far as I can tell. A number of my stocks have gone down to almost nothing. People sit with bids near zero waiting for those who just want out. It's hard to think up a less efficient market.</div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Take a look at this table. It's incredible. Those market cap numbers are in dollars! Say what you want about the (lack of) quality of my stocks but this is ridiculous. FRXX I believe has millions in revenue yet a market cap of seventeen hundred dollars. PRAC and SOFT I think do not actually exist as a business so the question is what's a ticker worth. RBCL last filed in 2017 with a $6.5M book value (P/B = 0.017%)! SYEV has the <a href="https://www.seychelle.com">bright website</a> of a thriving company, and the last 10-k from two years ago showed $3M in sales with a $3M book value, yet the stock sits priced like a bathroom remodel. Take a look at <a href="http://www.nonamestocks.com/search/label/HAUP">HAUP's</a> <a href="https://www.hauppauge.com">website here</a> and let me know if you think the company is really worth 10 grand. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">It's both funny and sad. The SEC has destroyed shareholder value in these dark stocks. I hold my shares and await brighter days. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2fAwwsvA4A4LstTyeV_zynvdnL2DiSXQSDI_Q_FrNVSGtSqNhcclbHeD29HhPzdZFa_tMCyOWp3FNPkbXvJ_k-ypgbqwaGr4dDWQc2CTnT3MzfIpM-o84eaAipvwt1NuV06KjBOm0hskVaKEyukmgYOcCDMvrk3X62Qa5q2lTjsY7QwC1AwnHLGSJ_A/s656/Screen%20Shot%202022-04-16%20at%204.13.00%20PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="418" data-original-width="656" height="255" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2fAwwsvA4A4LstTyeV_zynvdnL2DiSXQSDI_Q_FrNVSGtSqNhcclbHeD29HhPzdZFa_tMCyOWp3FNPkbXvJ_k-ypgbqwaGr4dDWQc2CTnT3MzfIpM-o84eaAipvwt1NuV06KjBOm0hskVaKEyukmgYOcCDMvrk3X62Qa5q2lTjsY7QwC1AwnHLGSJ_A/w400-h255/Screen%20Shot%202022-04-16%20at%204.13.00%20PM.png" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: left;"><b><u>IVRO</u></b></div><div class="separator" style="clear: both; text-align: left;"><a href="https://www.otcmarkets.com/stock/IVRO/overview">IVRO</a> is a story of potential and missed opportunity. I have owned IVRO for years now and it's always been one of my favorites. It's just so small and tight. Market cap of $3.6M, consistently profitable. I bought most of my shares around $0.05, near book value. I can recall not wanted to pay up to $0.07 and now the stock sits at $0.16... I never wrote it up because the stock moved and I wasn't able to buy as much as I wanted and it's hard to really call it cheap since it's priced at 3x revenue and over 2x book. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Still the potential is there. Just read these quotes from <a href="https://www.otcmarkets.com/otcapi/company/financial-report/314825/content">the latest 10k</a>:</div><blockquote>The Company is a pioneer in the field of non-animal testing and was first to develop and commercialize its flagship product Corrositex® in 1991. The global regulatory bodies that govern non-animal testing did not exist at the time. These regulatory bodies started to evolve in early 2000’s and then consolidated into a more robust global regulatory system in the last few years. Organization for Economic Co-operation and Development (OECD) is the foremost such regulatory body today, with 37 member countries, including the US, and covers more than 80% of the world of commerce.<br /><br />In 2014, Corrositex® was adopted by OECD, with the publication of Test Guideline (TG) 435. Following this regulatory approval, Corrositex®, became Global Harmonization System (GHS) accepted as a full replacement for animal test results virtually everywhere in the world of commerce. The OECD/European Centre for the Validation of Alternative Methods (ECVAM), Transport Canada, U.S. DOT, EPA, OSHA, Consumer Product Safety Commission, FDA, and the International Air Transport Authority (IATA) all have accepted Corrositex® as an alternative as well.<br /><br />In November 2019, the OECD published Test Guideline (TG) 496, the final step in the adoption of the Company’s now 30 year old core technology, Ocular Irritection® (OI). OI thus completes an eleven year effort to become the first 100% animal free ocular irritancy test method to be OECD accepted, validated and adopted for 37 countries, including the U.S.</blockquote><div class="separator" style="clear: both; text-align: left;">This is one I follow with extra excitement because I feel like it's a matter of time before they take off. I know they've been around forever but don't you think their products are the future? It has to be and if they can stay profitable with $1M in revenue I just imagine what'll happen when that double or triples. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">At the very end of 2021 the stock shot up to $0.50 and stayed near 0.30 for two months. When that happens I think of the possibilities. Why is it moving. Someone must know something. A partnership announcement is coming. What if it doubles again. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Sadly it has fallen back down and I captured nothing. Selling is hard and in this case there was a large movement but not huge volume. I watched it double and didn't sell because I feel like it can go higher. Looking back now it seems I should've sold some but oh well. Back to waiting.</div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi-1-zP3TBAVm0ejdhQ2Da2sKivig6K1Gqo07NGUc37IlLxzxNlXwprTwAVuYOjKueh4Y-MGp7CDH2PFWn08qqpEhSOeczPkYmwLT5SATWMR9dE5ljxFSeh23ZmZNg1Su8JsD6GYX9UNZQDoP8JDTaW0pjWothGNA9fUDZ_XYY6r7cszi69oMk4KXZRZw/s1174/Screen%20Shot%202022-04-16%20at%205.00.16%20PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="690" data-original-width="1174" height="376" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi-1-zP3TBAVm0ejdhQ2Da2sKivig6K1Gqo07NGUc37IlLxzxNlXwprTwAVuYOjKueh4Y-MGp7CDH2PFWn08qqpEhSOeczPkYmwLT5SATWMR9dE5ljxFSeh23ZmZNg1Su8JsD6GYX9UNZQDoP8JDTaW0pjWothGNA9fUDZ_XYY6r7cszi69oMk4KXZRZw/w640-h376/Screen%20Shot%202022-04-16%20at%205.00.16%20PM.png" width="640" /></a></div><br /><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;"><b><u>CCOM</u></b></div><div class="separator" style="clear: both; text-align: left;">Now on to a winner. I've owned CCOM for a few years, buying most of my shares around a dollar and only talking about the stock on <a href="http://www.nonamestocks.com/2020/11/avoiding-crowd-podcast.html">Maj's podcast</a>. CCOM is a small, consistently profitable HVAC company. Sitting around $10 per share in revenue and $0.10 earnings the past few years, with the stock near a buck. </div><div class="separator" style="clear: both; text-align: left;">I never wrote it up since it's a story I've told before: small, boring, and cheap. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Recently a <a href="https://www.otcmarkets.com/stock/CCOM/news/story?e&id=2160738">buyout at $2.71</a> was announced. It was a good premium so hard to argue with but then only a few weeks later they put out <a href="https://www.otcmarkets.com/stock/CCOM/news/story?e&id=2160738">an annual</a> with $0.54 EPS after backing out the PPP loan. Maybe it could've gone higher but it's out of my hands so I now sit waiting for the payment. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgKffqqI_DNnJ-EA_BThc9DHtdQdu5dXL8gpFLlmOXpBZo0U5guHmP72wgnzTYLGvc-ekh_5JNptrfcW7g-aMSQtftFaLMwBSd7t5oanGjk4oUnec3aPidIA0mzEGsMfT9sW3H7rhbl0CS292m3R4mLUhI-y0OFJ8aTCnUi-JLNjrNBiYUWiMlX9TV-0g/s1174/Screen%20Shot%202022-04-16%20at%205.09.21%20PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="688" data-original-width="1174" height="376" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgKffqqI_DNnJ-EA_BThc9DHtdQdu5dXL8gpFLlmOXpBZo0U5guHmP72wgnzTYLGvc-ekh_5JNptrfcW7g-aMSQtftFaLMwBSd7t5oanGjk4oUnec3aPidIA0mzEGsMfT9sW3H7rhbl0CS292m3R4mLUhI-y0OFJ8aTCnUi-JLNjrNBiYUWiMlX9TV-0g/w640-h376/Screen%20Shot%202022-04-16%20at%205.09.21%20PM.png" width="640" /></a></div><br /><div class="separator" style="clear: both; text-align: left;"><b><u>BDR</u></b></div><div class="separator" style="clear: both; text-align: left;">Let's finish up with something I think has potential. Blonder Tongue is an information technology hardware company in the midst of a turnaround. I know I'm a broken record with these turnarounds. I've owned the stock for years, buying and selling a few times. Take a look at the chart and you'll see why it's interesting now. It sits at support. This is where you buy. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">The company is trying to reverse many years of losses. They're moving into new markets and products. They've brought on new board members and executives. They've been cutting costs and following a plan to profitability. The question with BDR, and my other stocks DYNT, CVV, GIGA, HYDI, ..., is will they get there. They've got over a buck per share in sales. Take a look at <a href="https://www.blondertongue.com">their website</a> and you'll see the potential is there. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgeWbrqfruGc9v0p-SGgaS9qG0UxQph8n53GRGJXJD9o3wN2HXjuAM5ounNZls5Fay0cUeIIe3kgzGZ3aePPb9oAGOO8Ch60cYJPpPSg-nkZufWDCdV8aF7Nrp_0M3davXFbksYkG9VgK4TzDn3eBnf0j3rg91lD4fkM1ZuGg5yvKj4zQAUIHQtYLdmcw/s1170/Screen%20Shot%202022-04-16%20at%205.21.55%20PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="682" data-original-width="1170" height="374" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgeWbrqfruGc9v0p-SGgaS9qG0UxQph8n53GRGJXJD9o3wN2HXjuAM5ounNZls5Fay0cUeIIe3kgzGZ3aePPb9oAGOO8Ch60cYJPpPSg-nkZufWDCdV8aF7Nrp_0M3davXFbksYkG9VgK4TzDn3eBnf0j3rg91lD4fkM1ZuGg5yvKj4zQAUIHQtYLdmcw/w640-h374/Screen%20Shot%202022-04-16%20at%205.21.55%20PM.png" width="640" /></a></div><br /><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">--Dan</div><div class="separator" style="clear: both; text-align: left;">disclosure: long all the stocks I talked about</div><div class="separator" style="clear: both; text-align: left;"><br /></div>Subscribe to all NoNameStocks posts here: <a href="#">https://forms.feedblitz.com/erd</a>Dan Schumhttp://www.blogger.com/profile/05728696891530868697noreply@blogger.com9tag:blogger.com,1999:blog-754894216207950592.post-31371794161535089372021-12-30T23:44:00.002-08:002021-12-30T23:53:12.059-08:00MFCO Cheapened up Thanks to the SEC<p><a href="https://microwavefilter.com/index.html">Microwave Filter Company</a> (<a href="https://www.otcmarkets.com/stock/MFCO/overview">MFCO</a>) filed an <a href="https://www.otcmarkets.com/otcapi/company/financial-report/316239/content">annual</a> the other day showing the following per share numbers:</p><p></p><ul style="text-align: left;"><li>rev $2.01</li><li>book value $0.76</li><li>EPS $0.10</li></ul>That EPS is without the PPP loan that was forgiven and book value is after. The stock sits at $0.43. With 2.6M shares out that gives a market cap of $1.1M. I'd bet the fully depreciated building they own is worth 3 times the market cap alone. The stock is cheap.<span><a name='more'></a></span><div><br /></div><div>When I value a stock I generally take the higher of: 10x earnings, 1x revenue, 1x book value. With the latest numbers we would have a value of $1-$2 using that method. 2x - 5x the current share price. </div><div><br /></div><div>You always have to consider extra items and in this case that's the real estate. They've owned their building for decades and it's fully depreciated. I'm going to go with a real estate value of $3M based on these two excellent write-ups at <a href="https://www.elementaryvalue.com/home/microwave-filter-co-inc-mfco-a-pink-sheet-nano-cap-with-undervalued-assets">Elementary Value</a> and <a href="https://mesabarangevalue.com/2019/11/19/microwave-filter-company-mfco-trading-at-25-of-liquidation-value/">Mesaba Range Value</a>. </div><div><br /></div><div>Before we get to a full valuation you have to know some history so here's 15 years of numbers. At least the most important ones. All I want to highlight here is the operating company is stable and alive. It's not dying. (note the 2021 earnings exclude PPP forgiveness and book value is after PPP forgiveness). </div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEju5j8ktm-rrAXFWKGRxqQWPQlpAqFc_3pKoUf4AC6fiyBjp_awu8vQahr0qYHj69EXNAat1akNmA0PwhUP3YBXNlaCGwHsxRoQOUqBcYyKeiz57tA5o8-BpuywPWvFfOcKzZjTF7_-6g94X_MyIR3G0IAznZwEA_koS4Z07uxq75bjIEuG_xbn00eaLg=s1628" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="364" data-original-width="1628" height="144" src="https://blogger.googleusercontent.com/img/a/AVvXsEju5j8ktm-rrAXFWKGRxqQWPQlpAqFc_3pKoUf4AC6fiyBjp_awu8vQahr0qYHj69EXNAat1akNmA0PwhUP3YBXNlaCGwHsxRoQOUqBcYyKeiz57tA5o8-BpuywPWvFfOcKzZjTF7_-6g94X_MyIR3G0IAznZwEA_koS4Z07uxq75bjIEuG_xbn00eaLg=w640-h144" width="640" /></a></div><br /><div>MFCO makes electronic hardware filters. Been doing it for decades. I don't know much about the industry other than to say the need for hardware filters is not going away. I don't think the world is going backwards anytime soon. The <a href="https://microwavefilter.com/index.html">website</a> advertizes some new 5G filters which sounds exciting!</div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEhlbVM-A66sWV5fabTBXsg20aofPEZRIL__V3sG2oS9I0qHpl_UdFMtM2v8IWcxvE_Q-ytzu2bn0ILWa2b4w3mSQYIw2jMZvfS-xEfXE5Hne5UlgaYmZ3332eoa3zvmUPi1um7vB3xqg0AYoMnPkIqbTZRdTiBjC9pJUOreABLllTCUtrJcIMSaAuhHjA=s1912" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1290" data-original-width="1912" height="270" src="https://blogger.googleusercontent.com/img/a/AVvXsEhlbVM-A66sWV5fabTBXsg20aofPEZRIL__V3sG2oS9I0qHpl_UdFMtM2v8IWcxvE_Q-ytzu2bn0ILWa2b4w3mSQYIw2jMZvfS-xEfXE5Hne5UlgaYmZ3332eoa3zvmUPi1um7vB3xqg0AYoMnPkIqbTZRdTiBjC9pJUOreABLllTCUtrJcIMSaAuhHjA=w400-h270" width="400" /></a></div><br /><div>A description from the <a href="https://www.otcmarkets.com/otcapi/company/financial-report/316328/content">recently posted annual report</a>:<br /><blockquote>"Microwave Filter Company, Inc. designs, develops, manufactures and sells electronic filters, both for radio and microwave frequencies, to help process signal distribution and to prevent unwanted signals from disrupting transmit or receive operations. Markets served include cable television, television and radio broadcast, satellite broadcast, mobile radio and commercial and defense electronics."</blockquote></div><div>I'll say the operating business is worth $3-4M and then we have the real estate for another $3M. Total stock value of $6-7M or ~$2.50 per share. Current stock price is $0.43. Cheap with a capital C.</div><div><br /></div><div>But you have to ask yourself why am I being given this gift. Where is the disconnect?</div><div><br /></div><div>In this case it's the SEC. Check out this chart. The stock has been cut in half the past few months since the <a href="http://www.nonamestocks.com/2021/07/brokerages-new-sec-rule-and-podcast.html">new SEC rule</a> went into place. MFCO unfortunately did not comply with the new rule and was dropped to the Expert Market leaving few brokerages allowing trades. I'd be buying more right now if I could.</div><div> </div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEjIlCUrRlgDat8zOGWGdU0wghrsZQjjgITry49o4TC_EoH4yJ7XHQPdLsRoAOsP4juaJtpO1hckujmsyKyABCRKPq1sCLupD4Yu7OBWD8-3_jiAs_a8xp_50UlINDkbF2C77TwAdkZHoLS3ase2ExAQS_sA8-ZNgN4gnPXZs6KvWD_HOojf6diBeGhOFg=s1652" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="918" data-original-width="1652" height="223" src="https://blogger.googleusercontent.com/img/a/AVvXsEjIlCUrRlgDat8zOGWGdU0wghrsZQjjgITry49o4TC_EoH4yJ7XHQPdLsRoAOsP4juaJtpO1hckujmsyKyABCRKPq1sCLupD4Yu7OBWD8-3_jiAs_a8xp_50UlINDkbF2C77TwAdkZHoLS3ase2ExAQS_sA8-ZNgN4gnPXZs6KvWD_HOojf6diBeGhOFg=w400-h223" width="400" /></a></div><br /><div>What's interesting is the change. I'm always on the lookout for change. A week ago the company filed their <a href="https://www.otcmarkets.com/otcapi/company/financial-report/316239/content">2021 annual</a>. 4 days later the <a href="https://www.otcmarkets.com/otcapi/company/financial-report/316328/content">2020 annual</a> and most importantly a change from Expert Market to the OTC Markets Pink Limited Information Tier! </div><div><br /></div><div>That's right, the stock is going to be tradeable again. I expect the stock to be back closer to a dollar once the brokerages allow trading. Question is when will that happen. I don't know what the lag time is between otcmarkets tier change and online brokerages recognizing that status. Schwab at least still doesn't let me buy even though MFCO has met the SEC rule guidelines for a few days now. </div><div><br /></div><div>I own the stock for two reasons: it's cheap and potential is high. I want big stock movement and all the signs are there. The stock is illiquid with only 2.6M shares out. Near zero debt, no warrants, no preferred, super clean capital structure. The company is not going anywhere. Share count stable for many years. No way the stock is worth less than 3x the current price. </div><div><br /></div><div>But really all you need to know is here in this chart. We are at the bottom. It's low and forgotten and lonely. Look at that spike...it could happen again</div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEgacOyGMBhDS7OqkzTYhtvKn8dhF7lA0NkPgVl2oLAeDzP-TbE_1y79RSuCJCMjV5XtzdjnCqzJQjt89cQeKJayHJfTHjesRAA17I6jSRLqdYnG5XKhAIJakRIuGlfB5tHnAY2PU31wVq5JrlLfs_yIktgqPepb5YiROLvVPDOhskWz65bmJ0_1ws6QTA=s1168" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="678" data-original-width="1168" height="233" src="https://blogger.googleusercontent.com/img/a/AVvXsEgacOyGMBhDS7OqkzTYhtvKn8dhF7lA0NkPgVl2oLAeDzP-TbE_1y79RSuCJCMjV5XtzdjnCqzJQjt89cQeKJayHJfTHjesRAA17I6jSRLqdYnG5XKhAIJakRIuGlfB5tHnAY2PU31wVq5JrlLfs_yIktgqPepb5YiROLvVPDOhskWz65bmJ0_1ws6QTA=w400-h233" width="400" /></a></div><div><br /></div><div>--Dan</div><div>disclosure: long MFCO</div><div><br /></div><div>I strongly recommend you read the 2019 write-ups at <a href="https://www.elementaryvalue.com/home/microwave-filter-co-inc-mfco-a-pink-sheet-nano-cap-with-undervalued-assets">Elementary Value</a> and <a href="https://mesabarangevalue.com/2019/11/19/microwave-filter-company-mfco-trading-at-25-of-liquidation-value/">Mesaba Range Value</a>.</div><div><br /></div><div><div><p></p></div></div>Dan Schumhttp://www.blogger.com/profile/05728696891530868697noreply@blogger.com17tag:blogger.com,1999:blog-754894216207950592.post-32115069417700071682021-11-29T20:33:00.006-08:002021-11-29T21:49:31.240-08:00ADDC TenderADDC recently put out a tender offer to buy shares for $18.25. They are trying to get above 90% ownership to move onto a short form merger, buying out everyone without a choice. <br /><br />Anyone out there who owns shares please email me <a href="https://www.blogger.com/#">nonamestocksdan@gmail.com</a>. I am trying to figure out how many shares I know of that will not accept. I know we only have until Dec 3 so I am late with this post (family/Firebird getting in the way). <br /><br />You can find the <a href="https://drive.google.com/file/d/1qlA0Svji6_COIAtGorrNS6G2QoBca57t/view?usp=sharing">official offer and latest annual report here</a>. Table of numbers is below<span><a name='more'></a></span><br /><br /><div>Reading the president's letter in that report, it sure seems like they are trying to scare people into selling. Given the lack of liquidity with the recent SEC rule change I can understand if people are taking the offer. But I will not tender for $18.25 as it's way too low. The stock is worth $30 at least. <br /><br />Here is the offer (excuse the waviness of my phone app scan, ADDC only sends out a paper copy): <br /><div style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgcmfEFn0r-znEQv0TbET4vcBmaUUqsG1qEsoG0Iwz0_P__IIq4WXDva1kYSpHW9yBMZEieHW6nt-Z5KDen6T2gC6PktrOLJeoZcTtvpPfrRgj-mvfQ6irdJ55i_L5fvfkYTylVp-SXfwkA/s1358/Screen+Shot+2021-11-29+at+7.44.48+PM.png"><img border="0" height="261" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgcmfEFn0r-znEQv0TbET4vcBmaUUqsG1qEsoG0Iwz0_P__IIq4WXDva1kYSpHW9yBMZEieHW6nt-Z5KDen6T2gC6PktrOLJeoZcTtvpPfrRgj-mvfQ6irdJ55i_L5fvfkYTylVp-SXfwkA/w400-h261/Screen+Shot+2021-11-29+at+7.44.48+PM.png" width="400" /></a></div><br /><div style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiCRhT1Ve6HH8v90hpEr_E4fFmGQW61hEM1QNaXACLNojdXyoF5OO5QPVmofsmft5SAcxSF4pAQsOLNRMsQ77AaQmyyGlD-r7oPG44g0loeOzcYWaIMJ0MjF2uwwRBziovnBiallBazt1gL/s1386/Screen+Shot+2021-11-29+at+7.44.03+PM.png"><img border="0" height="89" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiCRhT1Ve6HH8v90hpEr_E4fFmGQW61hEM1QNaXACLNojdXyoF5OO5QPVmofsmft5SAcxSF4pAQsOLNRMsQ77AaQmyyGlD-r7oPG44g0loeOzcYWaIMJ0MjF2uwwRBziovnBiallBazt1gL/w400-h89/Screen+Shot+2021-11-29+at+7.44.03+PM.png" width="400" /></a></div><br /><div style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEixk6umcH8QRzM7NuxR9aPCaPR7e1BXB8wePiZNtv6HTKnlHIk7CskIFGkvFFkZSsVCmyWrUyMumgGcnik6hrjcrJXH8-EjiVCzw7-Mubce9yxkAkUfX-7CnmGkzh2ufKvsresOffcdsT43/s1334/Screen+Shot+2021-11-29+at+7.45.50+PM.png"><img border="0" height="62" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEixk6umcH8QRzM7NuxR9aPCaPR7e1BXB8wePiZNtv6HTKnlHIk7CskIFGkvFFkZSsVCmyWrUyMumgGcnik6hrjcrJXH8-EjiVCzw7-Mubce9yxkAkUfX-7CnmGkzh2ufKvsresOffcdsT43/w400-h62/Screen+Shot+2021-11-29+at+7.45.50+PM.png" width="400" /></a></div><br />That line in there about the short form is the important part. Once they cross that threshold they can inflict a buyout at the same $18.25 price without giving shareholders a choice. <br /><br />I know they want to be private and that's fine but $18.25 is not the right price. I'm willing to sell for the right price. Check these numbers and you decide. <br /><br />ADDC is a little hard to value due to the minority interest in Clary Corp. Book value and comprehensive income here have accounted for the minority interest but cash has not, and I'm not certain how much cash lies with Clary. But still this looks to me like a $30 stock at least. Remember on top of this book value is the understated real estate. See my <a href="https://www.blogger.com/#">previous posts here</a>. <div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiCO2M3bc31ToZJQG3dME1hX3fA9A1zAxoBry2wYTXPEUuxjk9BloggQLXl28VbFSGPWEjksJmb04lgN_XOvnzsgwqxrmW1qboqdkTblCdfIBdlLA4ep5L33jh0q07qASOvC0YYWFTs_xaV/s848/Screen+Shot+2021-11-29+at+8.18.52+PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="570" data-original-width="848" height="269" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiCO2M3bc31ToZJQG3dME1hX3fA9A1zAxoBry2wYTXPEUuxjk9BloggQLXl28VbFSGPWEjksJmb04lgN_XOvnzsgwqxrmW1qboqdkTblCdfIBdlLA4ep5L33jh0q07qASOvC0YYWFTs_xaV/w400-h269/Screen+Shot+2021-11-29+at+8.18.52+PM.png" width="400" /></a></div><br />Since the report date the company has bought back shares so now Book Value per share is up to $32.81. How can $18.25 be the right price?<div><br /><div>The Clarys have 977,067 shares = 76.6%. If they can get their minimum of 170,677 shares at $18.25 they'll have 90% and be able to take us all out at $18.25. I think the company is worth much more than that. <br /><br /><br />--Dan<br />disclosure: long ADDC</div></div></div>Dan Schumhttp://www.blogger.com/profile/05728696891530868697noreply@blogger.com7tag:blogger.com,1999:blog-754894216207950592.post-33180316966771517812021-10-07T14:31:00.000-07:002021-10-07T14:31:01.197-07:00ECIA: Dominoes and the Guessing Game<p>I like to buy stocks at the bottom, when the narrative has broken down and masses have left. This is when it gets interesting. Stock_price = company_value + public_perception so how can you buy on the cheap unless the sky is filled with doom and gloom. </p><p>I first bought <a href="http://www.nonamestocks.com/search/label/ECIA">ECIA</a> around $0.30 and <a href="http://www.nonamestocks.com/2019/07/ecia-is-on-verge-again.html">wrote up the stock</a> a couple years ago at $0.39. It had dropped to support, near the all time low. With an exciting medical business and tons of potential I bought with dollar signs in my eyes. </p><p>What I do is buy tiny, low, sleepy stocks with potential then wait and watch. Potential comes from both business and stock. I like a business with room to grow. The stock should be low with capital structure tight, and bonus points for a theme that can be meme'd to the moon. </p><p>After the buy starts a years long process of optimistically following along. I can see the rise in my mind. If things don't go my way I wait longer and as the situation warrants I buy more. This is the story of puzzle pieces falling into place. <span></span></p><a name='more'></a><p></p><p>This whole stock thing is a gambling game. We all try to stack the odds in our favor but in the end no one knows what will happen next. I believe my edges are size, patience, comfort away from the crowd, and optimism. </p><p>As time moves along I read filings and watch the chart. I wait. Every press release is another piece of the puzzle, every filing a clue. What will happen next? What does the volume and chart say about public perception. Where might the company be in 5 or 10 years? I err on the side of optimism because you just never know what's going to happen. Given enough time in enough of these tiny stocks you will see life changing movement, the question is can you hang on for the ride. </p><p>I have read pieces about people selling stocks once they reach fair value and to that I say you are clamping a ceiling on your investment. I buy what is low and small with potential; I sell what is over priced. In between those points I wait and watch. If you sell when a stock reaches your previous definition of fair value you are missing out on the future. You are throwing away innovation and potential and chance. I aim for life-changing returns every time I buy a stock and for that I need optimism over a long time horizon. The big moves are made over years. Just open up a long term chart and you'll see it. </p><p>Oh you don't have a long term chart handy, well let me help you out. Below are charts from a couple stocks my mentor has told me about for motivation and history. Note I don't own NOTV or BIOQ. His style is my style and these charts reinforce the strategy. </p><p>He's held NOTV about a decade. </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj7VImFblqrOS6DEjd5EVwv9XRp0wKpIGHHZMXvWRu274sytP_tKRCa-rJDm2chAgTbr02ul5W_3QWcql7wXhTK79kE6wdlzLuT2fH8sbedjz9HdqChnfo_L92J91D8F_r5zHHLV56glMuo/s1174/Screen+Shot+2021-10-06+at+10.39.55+PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="688" data-original-width="1174" height="235" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj7VImFblqrOS6DEjd5EVwv9XRp0wKpIGHHZMXvWRu274sytP_tKRCa-rJDm2chAgTbr02ul5W_3QWcql7wXhTK79kE6wdlzLuT2fH8sbedjz9HdqChnfo_L92J91D8F_r5zHHLV56glMuo/w400-h235/Screen+Shot+2021-10-06+at+10.39.55+PM.png" width="400" /></a></div><p>BIOQ held for decades and bought for pennies.</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjvcRYUkWXgfl9Ikcdg9QqWdf-LvSV9lYFALAB5P6YzGc0VkJiYcaczy_tvAYcH5yhn1i3sDePdlLidbdwormGtLlMS9Yo415ghYdarhKLGEi0T4bwRVnM6yDC1ejfkkcobvUhWKRBDpHFJ/s1174/Screen+Shot+2021-10-06+at+10.41.53+PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="700" data-original-width="1174" height="239" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjvcRYUkWXgfl9Ikcdg9QqWdf-LvSV9lYFALAB5P6YzGc0VkJiYcaczy_tvAYcH5yhn1i3sDePdlLidbdwormGtLlMS9Yo415ghYdarhKLGEi0T4bwRVnM6yDC1ejfkkcobvUhWKRBDpHFJ/w400-h239/Screen+Shot+2021-10-06+at+10.41.53+PM.png" width="400" /></a></div><div><br /></div>That's what I'm after. That's why I buy low and spread out the bets. This is where the optimism and patience comes in. What if the future is brighter? <br /><br /><div>As a stock rises the situation gets complicated. Selling is hard because it's forever a guessing game. How high might it go and how far could it fall? No one knows. That unpredictability is why I don't sell "fairly valued" stocks. All we can do is try our best and that's why I am constantly watching. Predicting the future is why I look at the chart and check bid/ask 50 times a day. As the pieces fall into place we have to determine how big the puzzle is and which direction we're headed. Around here you don't get to start your puzzle by forming that nice square edge, but rather must wait for it to be filled in by the future and the business and the public. </div><div><br /></div><div>I hold through the rise not out of greed, but curiosity and optimism. Always watching the scales tip back and forth, thinking about what might happen and trying to hit that home run. It's a gambling game after all. Incredible stock rises happen every year, just a matter of time before it's one of yours. </div><div><br /></div><div>Of course it doesn't always work out. I watched <a href="http://www.nonamestocks.com/search/label/HYDI">HYDI</a> rise from $0.50 to $3 and back, without capturing any gains. </div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhl9W_7SEaaLaqYKgDu0tui_ZsazWH-JIkunQ8bBt4ulfU1-nC-0OHlTfpHoTHgFyb4islV3OvXtJ8y4ngB6JdIIqlcPLy8A3PhvVKV2npw8Z-UaqbIU8jEQb_1dvILF3Mn0XqCHMWYUvNL/s1172/Screen+Shot+2021-10-07+at+7.54.50+AM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="684" data-original-width="1172" height="234" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhl9W_7SEaaLaqYKgDu0tui_ZsazWH-JIkunQ8bBt4ulfU1-nC-0OHlTfpHoTHgFyb4islV3OvXtJ8y4ngB6JdIIqlcPLy8A3PhvVKV2npw8Z-UaqbIU8jEQb_1dvILF3Mn0XqCHMWYUvNL/w400-h234/Screen+Shot+2021-10-07+at+7.54.50+AM.png" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><span style="text-align: left;"><br /></span></div><div class="separator" style="clear: both; text-align: left;">I've held on the sideline as <a href="http://www.nonamestocks.com/search/label/PCYN">PCYN</a> rise from $0.20 up to a buck and now almost all the way down. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEifVfdi1Igzrvf03nRjqna5XhiC_hq0BmjEfJicz1e1UL4Nb-8xws3ZjrSIUB7FS9cDpTnrIHJzGoQt79dLkPEzzeUmZiexEytBBXLK3zozd4cDdUYdPDrfoZusOtIV3JBPx5RwzdVOM0Ax/s1168/Screen+Shot+2021-10-07+at+8.00.02+AM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="682" data-original-width="1168" height="234" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEifVfdi1Igzrvf03nRjqna5XhiC_hq0BmjEfJicz1e1UL4Nb-8xws3ZjrSIUB7FS9cDpTnrIHJzGoQt79dLkPEzzeUmZiexEytBBXLK3zozd4cDdUYdPDrfoZusOtIV3JBPx5RwzdVOM0Ax/w400-h234/Screen+Shot+2021-10-07+at+8.00.02+AM.png" width="400" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: left;">That's part of the game and part of the gamble. The risk with any rise is waking up one day to realize everyone else left the party. But I'm always thinking back to <a href="http://www.nonamestocks.com/search/label/HEMA">HEMA</a>. I rode that lightning once and looking for the next. You don't need too many of these. </div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjxXE5w6eckKxGr_nAu1dlXLiODY1PB_sPbgPfH7zQh_sImzbxGVdpz2TOWSkJt6pHheX3CE6QBF3ON99fCpePvM7XS_czVe_R20Hy6vMkgUn8BbGCvr7Z_3_LYTV9o5mXAqT56CRL-PKzh/s1600/Screen+Shot+2020-04-17+at+11.44.24+PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="928" data-original-width="1600" height="233" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjxXE5w6eckKxGr_nAu1dlXLiODY1PB_sPbgPfH7zQh_sImzbxGVdpz2TOWSkJt6pHheX3CE6QBF3ON99fCpePvM7XS_czVe_R20Hy6vMkgUn8BbGCvr7Z_3_LYTV9o5mXAqT56CRL-PKzh/w400-h233/Screen+Shot+2020-04-17+at+11.44.24+PM.png" width="400" /></a></div><br /><div>ECIA has come up to around a dollar now from the $0.30s a couple years ago. I've been buying along the way. The rise is not luck, it's potential coming into focus and as always the real question is what does the future bring. </div><div><br /></div><div>A brief description from <a href="https://www.encision.com/wp-content/uploads/2019/04/Investor-Presentation-April-2019.pdf">ECIA's investor presentation</a>. When I read this I am surprised ECIA doesn't have a larger share of what <a href="https://www.otcmarkets.com/filing/html?id=15049434&guid=_kJwkH5OPhyjY3h">they view as a $500 million annual market</a>. </div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjS1reSByiolyp2uGLmESve_KDIQbcraTJFyfa9p9q8HtyAvCWnITNBmC-XgTt8wUg3lYVatDrZwiOqCvpgT1l-RKGzD3K6p1BKnLoayJfvsJ1hLu7Hp-UoXEAAQikkPv8HzEfMXuCYwNIW/s2594/Screen+Shot+2021-10-07+at+12.52.24+PM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1212" data-original-width="2594" height="301" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjS1reSByiolyp2uGLmESve_KDIQbcraTJFyfa9p9q8HtyAvCWnITNBmC-XgTt8wUg3lYVatDrZwiOqCvpgT1l-RKGzD3K6p1BKnLoayJfvsJ1hLu7Hp-UoXEAAQikkPv8HzEfMXuCYwNIW/w640-h301/Screen+Shot+2021-10-07+at+12.52.24+PM.png" width="640" /></a></div><br /><div>Some ECIA stats: </div><div><ul style="text-align: left;"><li>TTM rev 8.8M </li><li>earnings nothing</li><li>BV 2.8M</li><li>11.6M shares common</li><li>no preferred or warrants</li><li>stock has been hanging around a dollar recently giving market cap ~$12M</li></ul><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi_XDU13Da86S48MIhfR3VAlzl337MaoUedyiEP1qzRb3Az9DZed04u0PJ9yz7EEZDD8Iycz1LsFywG0NSDnik50J133cHdRFcwFr3qCEkHLAvTlGq84JM24sNgFpLP_uAdh1zFZQyJjoBf/s534/Screen+Shot+2021-10-07+at+9.02.30+AM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="98" data-original-width="534" height="59" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi_XDU13Da86S48MIhfR3VAlzl337MaoUedyiEP1qzRb3Az9DZed04u0PJ9yz7EEZDD8Iycz1LsFywG0NSDnik50J133cHdRFcwFr3qCEkHLAvTlGq84JM24sNgFpLP_uAdh1zFZQyJjoBf/s320/Screen+Shot+2021-10-07+at+9.02.30+AM.png" width="320" /></a></div><br /><div>I would not call ECIA cheap on those numbers but the stock market is not focused on the past. Look at the chart. Covid has not helped and yet with revenue flat the stock rises. Sure I could sell for a nice gain but I'm not here for nice. It's textbook stair-stepping up. Prior ceiling becoming the new floor; it happened at 0.50, 0.60, 0.80 and now forming support at $1. </div></div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgUAv5ydT2Nuu2tLD01Unp9192Lbs2X0m4PXPalt5VzoSNM2x0AdJ83qlpgfgv_pjh5xWCZatSAPEHwW7Xb9DJ8wSkD_HxDgV_stBTipQe-xF07AEngYGeJ-eih5XiCdqLjKN9WC2lr5t9_/s1170/Screen+Shot+2021-10-07+at+8.27.35+AM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="676" data-original-width="1170" height="231" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgUAv5ydT2Nuu2tLD01Unp9192Lbs2X0m4PXPalt5VzoSNM2x0AdJ83qlpgfgv_pjh5xWCZatSAPEHwW7Xb9DJ8wSkD_HxDgV_stBTipQe-xF07AEngYGeJ-eih5XiCdqLjKN9WC2lr5t9_/w400-h231/Screen+Shot+2021-10-07+at+8.27.35+AM.png" width="400" /></a></div><br /><div>The reason is puzzle pieces coming together. <br /><ul style="text-align: left;"><li>"In May 2020, the Food and Drug Administration issued a Safety Communication that stated that, "In addition to serving as an ignition source, monopolar energy use can directly result in unintended patient burns from capacitive coupling and intra-operative insulation failure.”" (<a href="https://www.blogger.com/#">from recent 10-k</a>)</li><ul><li>"During our March 31, 2020 quarter, we received a letter from the FDA. The letter contained a questionnaire regarding Stray Energy and how to prevent patient injuries from Stray Energy during laparoscopic procedures. We provided the FDA with extensive information on burns and our program for eliminating them. A Safety Communication was released by the FDA on May 29, 2020" (<a href="https://www.blogger.com/#">from recent 10-k</a>, see FDA letter <a href="https://www.blogger.com/#">here</a>)</li><li>ECIA put out a press release <a href="https://www.blogger.com/#">here</a>, stating, "To the best of our knowledge, AEM® Technology is the only technical solution to this issue"</li></ul><li>"During the year ended March 31, 2020, our proprietary patient safety technology was recognized by the U.S. Department of Veterans Affairs and provides us with the opportunity to market our instruments and monitors into VA Medical Centers. The VA is the largest medical system in the U.S. providing service to more than nine million veterans across more than 1,200 facilities." (<a href="https://www.blogger.com/#">from recent 10-k</a>)</li><li>"during the year ended March 31, 2020, we were awarded a prestigious Vizient Innovative Technology Contract for monopolar surgical instruments and monitors. Vizient represents a diverse membership base that includes academic medical centers, pediatric facilities, community hospitals, integrated health delivery networks and non-acute health care providers and represents approximately $100 billion in annual medical devices and supplies purchasing volume." (<a href="https://www.blogger.com/#">from recent 10-k</a>)</li><li>in Mar 2020 ECIA "<a href="https://www.encision.com/wp-content/uploads/2020/09/Encision-8K-Auris-4-30-2020.pdf">entered</a> into a Master Services Agreement (“MSA”) with Auris Health, Inc. (“Auris Health”), which is based in Redwood City, CA and a part of Johnson & Johnson Medical Devices Companies. Under the MSA, Encision and Auris Health will collaborate on the development of equipment designed to enable the compatibility of Encision’s AEM technology with monopolar instruments produced by Auris Health"</li><li><a href="https://www.blogger.com/#">heavy insider buying</a> in summer 2020 from $0.47-$0.64. </li><li>In August 2020 ECIA "<a href="https://www.blogger.com/#">announced</a> the introduction of Its AEM 2X enTouch® Scissors (“2X Scissors”). 2X Scissors bring new levels of performance and economy to the surgical scissor market by combining the best in class performance of Encision enTouch Disposable Scissors with the value and economy of a multi-use device."</li><ul><li>"2X Scissors are a game-changing product that will have a significant impact on the disposable laparoscopic scissor market"</li><li>"We expect 2X Scissors to have an attractive sales trajectory and will become a significant part of our portfolio of products"</li></ul><li>In August 2021 ECIA "<a href="https://www.encision.com/wp-content/uploads/2021/08/Encision-Release-8_24.pdf">announced</a> that Encision has signed a Supply Agreement ("Agreement") with Auris Health, Inc. ("Auris"), part of the Johnson & Johnson Medical Devices Companies. The Agreement will have an initial term of three years. During the term, Auris has agreed to buy certain AEM® Technology enabled products exclusively from Encision. Encision will receive an upfront payment and upon achieving certain milestones, a milestone payment in addition to revenues from proprietary product sales to Auris per the terms of the Agreement."</li><ul><li>Auris must really like what ECIA has to offer because they blew through the phase 1 service agreement then phase 2 and onto a supply agreement. Auris signed the service agreement in Mar 2020 with an initial term of 6 months at $320k. ECIA then got quarterly revenue from Auris of $23.4k, $99.1k, $163.6k, $363.6k, $290k before announcing the formal supply agreement. </li></ul></ul></div>Taken individually most of those bullet points are not something to base an investment upon. What they do is form the puzzle and clarify the future. Each positive press release is another step in the right direction. <br /><br />But that last one I feel could be a game changer. ECIA now has a supply agreement with Auris Health which is a subsidiary of Johson & Johnson, <a href="https://www.blogger.com/#">acquired</a> in 2019 for a few billion dollars. Makes me wonder if ECIA tech is going into <a href="https://www.blogger.com/#">Auris's new Monarch platform</a> of surgical robots. <br /><br />You see the traditional ECIA model is selling to hospitals. A quote from the <a href="https://www.otcmarkets.com/filing/html?id=15049434&guid=_kJwkH5OPhyjY3h">most recent 10k</a>, "When a hospital decides to use our AEM technology, we make recurring sales to such hospital for replacement instruments. Sales from reusable and disposable AEM products in hospitals represented over 90% of our sales in the fiscal year ended March 31, 2021, and we expect this sales stream to grow as new hospitals increasingly adopt AEM technology and existing hospitals increase usage of AEM instrumentation." <div><br /></div><div>I emailed back and forth with the CEO a bit recently and mostly it was me trying to get an answer on that specific point, if this new Auris deal is the result of a marketing or business shift. And if they are working on anyone else. Unfortunately he's not one to give out any information so all I got were the following quotes. He would not detail the milestone payments or any projections. </div><div><ul style="text-align: left;"><li>"Encision is always looking for partnering opportunities to make laparoscopic surgery safer with AEM® Technology. What we may or may not be working on and with whom is insider information."</li><li>when I asked what it took to get the deal signed with Auris, "It took a mutual appreciation for the objective and the differentiating potential. "</li></ul></div><div>If you look at the 10k, ECIA names 5 competitors and 2 of them are Johnson & Johnson. Now they are in bed with a J&J subsidiary and this has me wondering if Auris is the first domino to fall. ECIA has always seemed to be one of those technologies where once a few big players take a bite then the rest of the market would fall in line. The company <a href="https://www.otcmarkets.com/filing/html?id=15049434&guid=_kJwkH5OPhyjY3h">feels the same way</a>: "We believe that AEM technology is following a similar path as previous technological developments in surgery. Throughout the history of electrosurgery, companies that have developed significant technological breakthroughs in patient safety have seen their technologies become widely used. As with “Isolated” electrosurgical generators in the 1970s and with “REM” technology in the 1980s, AEM technology is receiving the broad endorsements that drove these previous new technologies to becoming a standard of care. We believe that it is possible to follow a course similar to that of pulse oximetry in becoming a standard of care."</div><div><br /></div><div>One thing I've wondered is why ECIA doesn't have a bigger share of the market, after all these years. Seems crazy to have this safer solution not become standard. One comment from a blog reader on my <a href="http://www.nonamestocks.com/2019/07/ecia-is-on-verge-again.html">last article</a> brought up a good point, "I think the problem has been that buying ECIA's products is tantamount to doctors/hospitals admitting that they injured/killed patients when there was an alternative. Switching could open them up to greater liability in my non-legal opinion." If ECIA puts together deals with other equipment providers that would be a way around this concern. <br /><div><br />Here is where the guessing and gambling come into play. How clear is your crystal ball? With the stock rising we definitely have this new Auris service agreement priced in to some degree before getting a dollar in revenue. If Auris turns out to be immaterial the stock will probably fall back down to support at 0.30. </div><div><br /></div><div>But what if there are more dominoes lined up behind Auris? You have to wonder what the Auris deal means for the other J&J subsidiary and the rest of the competitors. </div><div><br /></div><div>This long term chart says there's room to run. You decide</div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg7i5j1zfqdz5xzOR5HlDgNcZiUttnWK3abNiQZSuNcL5SaZM23B7GztCH_EVRc705j7ibvQ-E1hn8tfTb-cNpzpgoxmi9Me5s5gyxG678voW3hfsVYb5Hc2EUzH3__6GvjY41ZE86zQUL4/s1168/Screen+Shot+2021-10-07+at+2.29.54+PM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="678" data-original-width="1168" height="233" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg7i5j1zfqdz5xzOR5HlDgNcZiUttnWK3abNiQZSuNcL5SaZM23B7GztCH_EVRc705j7ibvQ-E1hn8tfTb-cNpzpgoxmi9Me5s5gyxG678voW3hfsVYb5Hc2EUzH3__6GvjY41ZE86zQUL4/w400-h233/Screen+Shot+2021-10-07+at+2.29.54+PM.png" width="400" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi8cPb7nswQE6KLX7dTY5gsiE-KLi7I_5Ipqb5xguO6J6wg6Dt0dWfhI5cRJONOTWVwHvhgRO6QUoRAEnG5sYqwIZDJRgP5EANi2-DaxSPSRr9jyL8DOLnqz90LekMqw8VIx9t8MM0bXgLx/s1170/Screen+Shot+2021-10-07+at+1.57.38+PM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="682" data-original-width="1170" height="234" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi8cPb7nswQE6KLX7dTY5gsiE-KLi7I_5Ipqb5xguO6J6wg6Dt0dWfhI5cRJONOTWVwHvhgRO6QUoRAEnG5sYqwIZDJRgP5EANi2-DaxSPSRr9jyL8DOLnqz90LekMqw8VIx9t8MM0bXgLx/w400-h234/Screen+Shot+2021-10-07+at+1.57.38+PM.png" width="400" /></a></div><br /><div><br /></div><div>--Dan</div><div>disclosure: long ECIA</div></div>Dan Schumhttp://www.blogger.com/profile/05728696891530868697noreply@blogger.com15tag:blogger.com,1999:blog-754894216207950592.post-45132914301161966282021-09-21T18:34:00.000-07:002021-09-21T18:34:00.324-07:00Capital Employed Podcast<p>I was recently interviewed on the <a href="https://capitalemployed.fm/subscribe/">Capital Employed Podcast</a> by Jon Kingston. It was a lot of fun. Jon keeps it quick. We talked about my background and style then dug into two stocks: <a href="http://www.nonamestocks.com/search/label/PGNT">PGNT</a> and GVP. </p><a name='more'></a>GVP is one I've not talked about before on the blog so tune in to hear more. <a href="http://www.nonamestocks.com/search/label/PGNT">PGNT</a> I wrote up a few months ago. <p></p><p>You can listen on YouTube <a href="https://www.youtube.com/watch?v=yZGetFaf9MQ">here</a> and Spotify <a href="https://open.spotify.com/episode/2SDLnKISt9QNsvRDbMBWyK">here</a>. </p><p>Enjoy!</p><p><br /></p><p>--Dan</p><p>disclosure: long GVP, PGNT</p>Dan Schumhttp://www.blogger.com/profile/05728696891530868697noreply@blogger.com6tag:blogger.com,1999:blog-754894216207950592.post-80375459276960471432021-08-30T17:21:00.005-07:002021-08-30T19:28:18.389-07:00TCOR Pummeled in the Darkness<p><a href="http://treeconresources.com">Treecon Resources</a> (<a href="https://www.otcmarkets.com/stock/TCOR/overview">TCOR</a>) closed today with a stock price of $0.35 giving a market cap of $7.9M. This for a company with TTM revenue of $80M and $0.181 EPS. I like buying stocks at 2x earnings, how about you?<span><br /></span><span></span></p><a name='more'></a><p></p><p>Before you get too excited there are some drawbacks. I don't know how much of the <a href="http://www.treeconresources.com/wp-content/uploads/2011/07/03-31-21-Selected-Financial-Information.pdf">most recent quarter's</a> $0.08 EPS is due to one-off items because the company doesn't talk much. They provide limited quarterly financials on their website <a href="http://treeconresources.com/?page_id=98">here</a> with a press release <a href="http://treeconresources.com/?page_id=159">here</a>, but they do not file officially with the SEC or OTCmarkets so they have the dreaded Stop Sign of Darkness:</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh5a7YWII9fgYJJtj9EhYORFatU6U_SGK69OaMxU65wdUnfRnc1zRk5_u5wGTEh2VrrJ8q6OSDQqIr_QeTEAhw3asJU08xg07NWKbhg4GYNKtcdhzKFf3Ij4yxhp10qm5rL6I3lMJNqTRBk/s2176/Screen+Shot+2021-08-30+at+4.24.34+PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="544" data-original-width="2176" height="160" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh5a7YWII9fgYJJtj9EhYORFatU6U_SGK69OaMxU65wdUnfRnc1zRk5_u5wGTEh2VrrJ8q6OSDQqIr_QeTEAhw3asJU08xg07NWKbhg4GYNKtcdhzKFf3Ij4yxhp10qm5rL6I3lMJNqTRBk/w640-h160/Screen+Shot+2021-08-30+at+4.24.34+PM.png" width="640" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both;">The stock is down ~65% from the recent high near a dollar two months ago. TCOR was up on the heels of good numbers and lumber speculation. I have to admit I was hoping for a spike earlier this year as lumber ran to the moon. You see they own a bunch of timber land supposedly bought out of the dumpster years ago. Below is a company description from their website (emphasis mine):</div><div class="separator" style="clear: both;"><blockquote>"TreeCon Resources, Inc., is a holding company that, through its subsidiaries, operates a portfolio of businesses based primarily in the east Texas forest region.<br /><br />Logging and heavy equipment dealership operations are conducted through the Company's wholly owned subsidiary Texas Timberjack, with sales, leasing, financing and service locations in Lufkin, Jasper and Cleveland, Texas.<br /><br />Lumber and treating operations are conducted through it's wholly owned subsidiaries, Southern Forest Products in Newton County, Texas and International Forest Products in Houston, Texas.<br /><br />Texas Frac Fluids operates an oilfield services facility in northeast Texas producing water-based fluids for the oil and gas industry.<br /><br /><b><u>The Company also owns and manages a real estate portfolio consisting primarily of timberlands in Texas and Louisiana.</u></b>"</blockquote>I say supposedly because the company won't communicate any more than what you see on the website. All I have is that plus anecdotes from other shareholders. I got a hold of the CFO at the end of last year by guessing her email enough times that one of them finally went through. I sent my list of questions but didn't get the response I was looking for:<br /><blockquote>"Dan </blockquote><blockquote>Thank you for your inquiry. Please see our website for published information. <a href="http://treeconresources.com/">http://treeconresources.com</a>, Have a safe and merry Christmas."</blockquote><p>I think the stock is down so hard recently because of the <a href="http://www.nonamestocks.com/2021/07/brokerages-new-sec-rule-and-podcast.html">stupid new SEC rule</a>. TCOR has the stop sign and has shown no desire to change that. Schwab will no longer let me buy the stock and in another month I'm not sure what brokerages will. The congregation is rushing the exit before they get locked inside. </p><p>Given enough time, effort, and money there will be ways to buy. I just don't know what those ways are or how it'll change in the next few months. So far I've heard Robotti is a possibility. </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh2glr_xWuTKW3FTE2TSuINPgFnu8_pzaLLkcpyO2Sef39PkyEkBkjh61BpBolLKwfNAG-bkxKXe06FyQusUa2nOlvHM2Gft7fwvZsGfVnLMBAV77S5deGKjzif4FeXrrtDsUib_0S2WjmQ/s1196/Screen+Shot+2021-08-30+at+5.01.57+PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="406" data-original-width="1196" height="136" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh2glr_xWuTKW3FTE2TSuINPgFnu8_pzaLLkcpyO2Sef39PkyEkBkjh61BpBolLKwfNAG-bkxKXe06FyQusUa2nOlvHM2Gft7fwvZsGfVnLMBAV77S5deGKjzif4FeXrrtDsUib_0S2WjmQ/w400-h136/Screen+Shot+2021-08-30+at+5.01.57+PM.png" width="400" /></a></div><p>Still the stock is Cheap with a capital C. Check these numbers from the <a href="http://www.treeconresources.com/wp-content/uploads/2011/07/09-30-20-Selected-Financial-Information.pdf">most recent annual</a>:</p><p></p><ul style="text-align: left;"><li>22.62M shares out</li><li>$35.7M book value</li><li>$76.7M revenue</li><li>$2.1M net income</li><ul><li>had $1.25M "other income" from PPP</li></ul></ul><p></p><p>At a stock price os $0.35 the stock trades at 2x earnings, 1/10 of TTM sales, 1/5 of the most recently reported book value. The risk is you don't really know everything behind the curtain but that's also the allure. What happens when that timber land is ready for harvest? </p><p><i>****update 20210830</i></p><p><i>One interesting thing is the company has posted 3 full annual reports to their site. They're not referenced anywhere and I only found by googling. Unfortunately it doesn't appear to be something they keep up. </i></p><p></p><ul style="text-align: left;"><li><a href="http://treeconresources.com/wp-content/uploads/2012/02/2009-Treecon-Audited-Financials.pdf"><i>2009 annual</i></a></li><li><a href="http://treeconresources.com/wp-content/uploads/2011/07/2013-Treecon-Audited-Financials.pdf"><i>2013 annual</i></a></li><li><a href="http://treeconresources.com/wp-content/uploads/2012/02/2009-Treecon-Audited-Financials.pdf"><i>2014 annual</i></a></li></ul><p></p><p><i>****</i></p><p>I've made a spread sheet of all their reported numbers. Here are quarterly EPS and revenue:</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj6qtW1Y7FBSw3WX_ez6SNODAdfykJrmoazcY6cV5Zl1JKEoOmOCultqi_hTgkwN-_cDtstLekIO2H8cLf7MQcnQz1mQKRi6c0ZoR0jtbLiqzNcZSvURokwOyI0zF-Q_r5vu6LfJBjYjDrG/s1892/Screen+Shot+2021-08-30+at+5.06.52+PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="636" data-original-width="1892" height="216" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj6qtW1Y7FBSw3WX_ez6SNODAdfykJrmoazcY6cV5Zl1JKEoOmOCultqi_hTgkwN-_cDtstLekIO2H8cLf7MQcnQz1mQKRi6c0ZoR0jtbLiqzNcZSvURokwOyI0zF-Q_r5vu6LfJBjYjDrG/w640-h216/Screen+Shot+2021-08-30+at+5.06.52+PM.png" width="640" /></a></div><p>And annual:</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEin30X-l7FCxM8XonFidtop7r0ZUyYJQq1LdUZiOyYY0ntUwHs9e5Txaq-850ziTPyZQ1JCZVuDSuIgEbolFt85E5Z2y1_gfGpPd51b2b4AuslDwN6bc-pIWmVN1w-ad49l32hZlTqDBQ4X/s1884/Screen+Shot+2021-08-30+at+5.07.03+PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="640" data-original-width="1884" height="218" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEin30X-l7FCxM8XonFidtop7r0ZUyYJQq1LdUZiOyYY0ntUwHs9e5Txaq-850ziTPyZQ1JCZVuDSuIgEbolFt85E5Z2y1_gfGpPd51b2b4AuslDwN6bc-pIWmVN1w-ad49l32hZlTqDBQ4X/w640-h218/Screen+Shot+2021-08-30+at+5.07.03+PM.png" width="640" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: left;">To me the company is worth a couple bucks in a sale. Has to be worth at least book value. Just need to lean on that patience.</div><div class="separator" style="clear: both; text-align: left;"><br /></div><p>--Dan</p><p>disclosure: long TCOR</p></div>Dan Schumhttp://www.blogger.com/profile/05728696891530868697noreply@blogger.com29tag:blogger.com,1999:blog-754894216207950592.post-69185828699764013532021-07-31T23:08:00.003-07:002021-09-01T16:09:21.556-07:00Brokerages, the new SEC Rule, and a Podcast<p>Now that the <a href="https://www.sec.gov/news/public-statement/clayton-otc-2020-09-16">SEC followed through</a> with <a href="http://www.nonamestocks.com/2019/10/sec-wants-to-stop-trading-in-dark-stocks.html">their rule 15c2-11 change</a> blocking quotes from non-reporting companies, the brokerages are all backing away. I don't know if the SEC realized this would happen but it seems like every online brokerage company's response is to just take their ball and go home. </p><p>In recent weeks we've seen announcements from Schwab, TDAmeritrade, and others saying they will not allow clients to purchase non-reporting stocks after August 2021. Unfortunately I don't know of a single online brokerage that will let you buy dark stocks after the rule change goes into effect in Sept 2021. <span></span></p><p>I was a guest on The Investor's Roundtable the other day to discuss this topic. You can hear the audio <a href="https://planetmicrocap.podbean.com/e/the-investors-roundtable-40/">here</a> and watch video <a href="https://www.youtube.com/watch?v=C0UHHfIQkLk">here</a>. Give it a listen to hear my own opinion as well as some others I really respect. I have to say it was a real trip to be on a panel with my hero Dave Waters of <a href="https://otcadventures.com">OTC Adventures</a> / <a href="https://alluvial.substack.com">Alluvial Capital</a>. </p><a name='more'></a><p>You can see the full Schwab statement <a href="https://www.schwab.com/resource/otcexpertmarket">here</a> and I've attached screenshots to the end of this post. TDAmeritrade says the same thing which makes sense given their merger. They will not allow any more buys of anything not listed as current on <a href="https://www.otcmarkets.com/">OTCMarkets</a>. No stop signs, no grey market, no caveat emptor. At least we can still buy the yield sign Pink Limited Information tier stocks so there's that. In all, Schwab is turning off the lights on ~6-7k stocks when you combine this with the <a href="https://content.schwab.com/email/retail/long-term/cesecuritylist.pdf">Caveat Emptor announcement</a> from earlier this year. It's so sad. </p><p>I've run into similar issues with brokerages before and 5 years ago I contacted every brokerage I could find to see who would let me buy these types of stocks and who would allow an account transfer containing these stocks. You can see the results <a href="http://www.nonamestocks.com/2016/10/brokerage-firms-otc-markets-and-dark.html">here</a> and there were only a handful even at that time. My plan now is to ask around again, starting with those brokerages who did not give me an explicit no last time. But with all the uncertainty right now I'd bet I have to wait until Oct to get a real answer. </p><p>As of right now I know T Rowe Price will still allow purchases of dark and caveat emptor stocks but I've heard they will not after Sept. I have been told Canadian brokerages will allow purchases right now but I haven't confirmed myself. I know at least some full service brokers operating through Pershing, like <a href="https://www.odeoncap.com">Odean</a>, will allow customers to buy anything still, but I don't know what they'll do come Sept. </p><p>The basic change coming from this SEC rule change is no brokerage is allowed to provide bid/ask quotes for any non-reporting stocks. In response, OTCmarkets has put in <a href="https://www.sec.gov/comments/s7-23-20/s72320.htm">an SEC proposal</a> to move all these dark stocks onto their Expert Market where they would provide quotes and qualified investors could trade. So far the SEC has not responded to the OTCmarkets proposal which is messed up since the rule goes into effect in a matter of weeks. When I've asked brokerages about this they can't even respond because it's not a real thing yet. </p><p>I think we will have a way to trade these stocks at some point, '"m just not clear on what that will entail. It may require higher commission payments. I may have to *gasp* pick up the phone to call in trades. It may not be available for some time after Schwab blocks me from buying dark stocks. I really don't know but I think capitalism will find a way. </p><p>So the question is what can you do about it. Bitching and moaning is fun but gets us no where so what I suggest is two fold:</p><p></p><ul style="text-align: left;"><li>If you want to trade these stocks let your brokerage know. They will only change if they know what their customers want. I have told Schwab over chat, email, and twitter. I haven't started in on Etrade yet but I will. And I'll be contacting other brokerages. </li><li>Push the SEC to adopt the OTCmarkets Expert Market. I know it's not ideal, and you'd have to be qualified to access, but the Expert Market is better than nothing. There are a lot of "what-ifs" but I have to try: if they do get the exemption, and brokerages do allow people to trade on this market, and if I can qualify. </li></ul><div>So pasted below is my comment letter to the SEC. You can see them all <a href="https://www.sec.gov/comments/s7-23-20/s72320.htm">here</a>. If you want to comment then you just have to send an email to rule-comments@sec.gov with the file number S7-23-20 in the subject. My past attempts to influence the SEC have borne no fruit but I have to try again. If you want something you must fight for it. <br /><br />--Dan<br />disclosure: drained, sad, and shaking my head</div><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhv09MgufR3FhV8Ce7NQBtF3HwLGQf56RKH_KeURUrpjQHR3Xb1KR-MhNRJjJqSNg9boNASBoo7nBTWw7iKDkUZRsWZB1bLCjbEsjs9WD8yKKRQC53lUuGnAsx4ObZSkVviO3ekawAWs2xl/s1266/Screen+Shot+2021-07-31+at+1.01.40+PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="626" data-original-width="1266" height="317" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhv09MgufR3FhV8Ce7NQBtF3HwLGQf56RKH_KeURUrpjQHR3Xb1KR-MhNRJjJqSNg9boNASBoo7nBTWw7iKDkUZRsWZB1bLCjbEsjs9WD8yKKRQC53lUuGnAsx4ObZSkVviO3ekawAWs2xl/w640-h317/Screen+Shot+2021-07-31+at+1.01.40+PM.png" width="640" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgknwaP-WjohEh0dntTee4HPx8nMSUjgc6rTUfB6BUoO_witsUB5ljl_GWZMnBScJGaKLu1CWE4Mu0iXgD-E5Z6o-TUNRWYEccoqen5j3d7Pnf9y70eScjkGrGR9sdxDd_vFnXCGZLUIRTV/s1712/Screen+Shot+2021-07-31+at+1.02.07+PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1712" data-original-width="1058" height="640" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgknwaP-WjohEh0dntTee4HPx8nMSUjgc6rTUfB6BUoO_witsUB5ljl_GWZMnBScJGaKLu1CWE4Mu0iXgD-E5Z6o-TUNRWYEccoqen5j3d7Pnf9y70eScjkGrGR9sdxDd_vFnXCGZLUIRTV/w396-h640/Screen+Shot+2021-07-31+at+1.02.07+PM.png" width="396" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjUGygNHisD4CCIZhIt5f45USm7tv_dps2Ag4B3z8VNnHLAoCN8rpga3J3roXD9njhwmSofzzDpkFx8k3lCxdJoDBT8Z65IsHHVM_e4GtsHVj2dPwDjWYerZiMqxyXubQtV-F8w_mRcnUSL/s1024/Screen+Shot+2021-07-31+at+1.00.24+PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="474" data-original-width="1024" height="296" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjUGygNHisD4CCIZhIt5f45USm7tv_dps2Ag4B3z8VNnHLAoCN8rpga3J3roXD9njhwmSofzzDpkFx8k3lCxdJoDBT8Z65IsHHVM_e4GtsHVj2dPwDjWYerZiMqxyXubQtV-F8w_mRcnUSL/w640-h296/Screen+Shot+2021-07-31+at+1.00.24+PM.png" width="640" /></a></div><br /><table border="0" cellpadding="0" cellspacing="0" class="message" style="color: black; font-family: arial, sans-serif; font-size: 13px; width: 100%px;"><tbody><tr><td><span><b>Dan Schum </b></span></td><td align="right"><span>Sat, Jul 31, 2021 at 9:29 PM</span></td></tr><tr><td colspan="2" style="padding-bottom: 4px;"><span class="recipient">To: rule-comments@sec.gov</span></td></tr><tr><td colspan="2"><table border="0" cellpadding="12" cellspacing="0" style="width: 100%px;"><tbody><tr><td style="font-size: 13px;"><div style="overflow: hidden;"><span><div dir="ltr">To whom it may concern,<div><br /></div><div>I am a private investor focusing on the small and dark stock space. I own many stocks affected by the recent change to SEC rule 15c2-11. Recently a number of brokerages have communicated their actions as a result of this rule and unfortunately all of them are backing away from trading. See Schwab's announcement here for example: <a data-saferedirecturl="https://www.google.com/url?hl=en&q=https://www.schwab.com/resource/otcexpertmarket&source=gmail&ust=1627884181826000&usg=AFQjCNH3HhUq_TsrBlVGhFUBqwfTyIeO-g" href="https://www.schwab.com/resource/otcexpertmarket" style="color: #1155cc; text-decoration: none;" target="_blank">https://www.schwab.com/<wbr></wbr>resource/otcexpertmarket</a>. This is the important line from Schwab's announcement, "Ahead of the regulatory enforcement date, Schwab will o<br />nly accept orders to liquidate positions (i.e. no new buy orders) starting in late August 2021." I am sad to say I can't find a single online brokerage that will allow me to buy non-reporting stocks after your rule enforcement date of Sept 2021. </div><div><br /></div><div>Whatever the SEC was hoping to accomplish with this rule change I can tell you many real companies are not going to change their ways. Combine the SEC rule change with the brokerages' reaction of blocking buys and this means many stocks I own can no longer be bought. TCOR for example posts financial results on their website and is currently selling for about 0.2x revenue, 0.4x book value, and 6x earnings yet no one will be able to buy it anymore. DYSL sends a full annual report to all sharesholders, is profitable and selling below book yet no one will be able to buy it anymore. I could go on. There are real quality companies in this space and this corner of the market is one place where an individual investor can have a real edge over the big hedge funds of the world. Please do not cut me off from my alpha.</div><div><br /></div><div>I urge you to do two things:<br /></div><div><ul><li>approve the otcmarkets' Expert Market exemption without a sunset provision as soon as possible so brokerages and the market can react. Without this approval brokerages cannot plan and carry out their business for clients like myself that would like to transact in this corner of the market. </li><li>extend the adoption date of this new rule to give the market and brokerages time to adjust and approve necessary individuals</li></ul><div><br /></div></div><div>Thank you,</div><div>Dan Schum</div></div></span></div></td></tr></tbody></table></td></tr></tbody></table>Dan Schumhttp://www.blogger.com/profile/05728696891530868697noreply@blogger.com33tag:blogger.com,1999:blog-754894216207950592.post-12162002463114022932021-07-18T20:07:00.001-07:002021-07-19T12:47:30.360-07:00Closing the Book on SIMAI first wrote up <a href="https://www.blogger.com/#">SIMA</a> almost 5 years ago with the stock at $0.65. Since then it went as high as ~$13 before falling back a bit. <br /><br />A couple weeks ago the company put out a tender offer to buy out all sharesholders at $10 (oddballstocks wrote up a nice summary <a href="https://www.blogger.com/#">here</a>).<span><a name='more'></a></span><br /><br /><div>SIMA offers up such a good summary of life here in the dark OTC space. One the on hand buying a stock near a dollar then having the company buy you out for 10x that is amazing! It's what I'm looking for and it's what my style needs to survive. But on the other hand the price is ridiculous and there is no one around to protect shareholders. The company puts out no press release or communication to the public. The SEC does not care since <a href="http://www.nonamestocks.com/2016/06/the-sec-allows-companies-to-go-dark.html">they allowed</a> SIMA to de-register and disappear. <br /><br />With the tender offer the company included financials. For 2021 we only have 9 months of data so I've taken the liberty of extrapolating that out to the full year (so the far left column is my linear estimate). <br /><br />What do you think this stock is worth? I'll go with $15 at least <br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjvmCYsEwUsFjX-mpU0n-HatU7vrc6B7D5PQVQr_RRTp2srtAysc0UUxLhft2o6XW40FlMqqxysA_YeGK6MWL2yKKkNcjDtV37DB11zeKkB5BqZ1GUY23ZFSBhRyjm8LUty-lUi8Lol-8Uc/s1358/Screen+Shot+2021-07-18+at+7.52.48+PM.png"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjvmCYsEwUsFjX-mpU0n-HatU7vrc6B7D5PQVQr_RRTp2srtAysc0UUxLhft2o6XW40FlMqqxysA_YeGK6MWL2yKKkNcjDtV37DB11zeKkB5BqZ1GUY23ZFSBhRyjm8LUty-lUi8Lol-8Uc/w640-h338/Screen+Shot+2021-07-18+at+7.52.48+PM.png" /></a><br /><br /><br />Now check out this independent fair value opinion from <a href="http://www.oddballstocks.com/2021/07/sonics-materials-inc-tender-offer-sima.html">the tender</a>:<br /><blockquote>"Access Value has determined that the fair market value per share of Common Stock as of March 31, 2021 was $6.11 on a minority, non-marketable basis and $9.60 on a minority, marketable basis."</blockquote><div class="separator" style="clear: both; text-align: left;">Unbelievable! The company has $8.58 in cash & securities right now and earned $0.58 the past 9 months yet it's worth $6.11 to $9.60?!?! </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">But what can you do. If you own shares your choice is either take the money or continue waiting. I wouldn't count on the company treating you well. Life on the OTC...</div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">--Dan</div><div class="separator" style="clear: both; text-align: left;">disclosure: long 1 share since I sold the rest last year at $8.67. I think I'll just keep my single share </div><span><!--more--></span></div>Dan Schumhttp://www.blogger.com/profile/05728696891530868697noreply@blogger.com1tag:blogger.com,1999:blog-754894216207950592.post-2537232168635102722021-05-29T23:08:00.003-07:002021-05-30T08:37:09.366-07:00PIRS Spells PotentialI like to buy stocks I think have the potential to make me 5x, 10x, 20x my money. I don't feel confident enough in myself to think I can judge when a stock should be slightly higher, like say 25% or 50%. I search out situations where the stock could move a lot. I need big moves and huge winners to make up for the losers and to cover for when I don't look deep enough. Singles won't get me where I'm trying to go, I need home runs.<br /><br />There are many different situations in my portfolio and they all have one theme in common: potential. I'm here for the potential to change my life.<br /><br />Pieris Pharmaceuticals (<a href="https://www.blogger.com/#">PIRS</a>) is a "clinical-stage biotechnology company that discovers and develops Anticalin-based drugs to target validated disease pathways in unique and transformative ways". Agreements with a number of huge companies give PIRS total potential milestone payments of over 30x the current market cap, plus royalties! Sound interesting?<span><a name='more'></a></span><p>This post can be summarized with two pictures. First a list of collaborations from their <a href="https://www.otcmarkets.com/filing/html?id=14982384&guid=NW-UkaZlBdFoGyh#MAY2021_HTM">most recent investor presentation</a>: </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjaa09qTRQ5Z_PcyBO0XVXVqe7IYE8cs8U53wVOXfQb0Lgb7z0vg11TmFymyMPowOOx2sDh7YvirO28ivlf38qSY-aM6bDXDucNV4yKkHs6JLUtjLW_GMFbw4jVaOa_tTm_pQ6QUyYYJJwd/s2048/Screen+Shot+2021-05-29+at+5.55.02+PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1148" data-original-width="2048" height="358" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjaa09qTRQ5Z_PcyBO0XVXVqe7IYE8cs8U53wVOXfQb0Lgb7z0vg11TmFymyMPowOOx2sDh7YvirO28ivlf38qSY-aM6bDXDucNV4yKkHs6JLUtjLW_GMFbw4jVaOa_tTm_pQ6QUyYYJJwd/w640-h358/Screen+Shot+2021-05-29+at+5.55.02+PM.png" width="640" /></a></div><div><br /></div>And a long term chart showing agreements overlayed with the total potential milestone payments and partner investments. <div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjuwzH-TPJx2KhsI-colmBKKtOvlLwQcc8W7U8JWnftBSwh2lpBpzWbLkYvUtF73TsKuYjUc7GRqywE5o9j6qCdR6vG0AmAa9cAsIYrxiz3bN1JNYlRfPydx89uG-e4nQ8Q-V1sfAHPJmi6/s1182/Screen+Shot+2021-05-29+at+8.21.40+AM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="682" data-original-width="1182" height="370" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjuwzH-TPJx2KhsI-colmBKKtOvlLwQcc8W7U8JWnftBSwh2lpBpzWbLkYvUtF73TsKuYjUc7GRqywE5o9j6qCdR6vG0AmAa9cAsIYrxiz3bN1JNYlRfPydx89uG-e4nQ8Q-V1sfAHPJmi6/w640-h370/Screen+Shot+2021-05-29+at+8.21.40+AM.png" width="640" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><br /></div><div>PIRS is a larger company than I usually write about. </div><div><ul style="text-align: left;"><li>63.3M shares common</li><li>14.4k shares preferred convertible into 1000 shares each</li><li>so total diluted share count 77.7M shares</li><li>fully diluted market cap $272M given share price around $3.50</li></ul><div>And they have never turned a profit. The company has been selling shares to fund development as they work towards product. Last year PIRS brought in $29M in revenue while spending $47M on R&D. Talk about commitment to the future</div><div><br /></div><div>I won't pretend to understand what they do beyond try to cure diseases. You can read about it in <a href="https://www.otcmarkets.com/filing/html?id=14843728&guid=P4XUkePydbH-UMh">the 10k</a>. It sounds impressive and makes me believe the sky is the limit. </div><div><br /></div><div>What I do understand is upside. Look back at that price chart and the collaboration snapshot. One thing I see in that chart is news accelerating. Just in the past few months PIRS signed a <a href="https://www.otcmarkets.com/filing/html?id=14892187&guid=NW-UkaZlBdFoGyh">deal with Boston Pharmaceuticals</a>, took on investments from both <a href="https://www.otcmarkets.com/filing/html?id=14823950&guid=P4XUkePydbH-UMh">Seagan</a> and <a href="https://www.sec.gov/ix?doc=/Archives/edgar/data/0001583648/000162828021006061/pirs-20210329.htm">AstraZeneca</a>, and signed a <a href="https://www.otcmarkets.com/filing/html?id=14982379&guid=NW-UkaZlBdFoGyh">deal with Genentech</a>. Those are major names with deep pockets. AstraZeneca has a market cap of $150B. Genentech is huge. It might be a coincidence but there sure is a lot of activity lately and it all seems so positive. </div><div><br /></div><div>The AstraZeneca investment really interests me because the total potential milestone payments from AstraZeneca jumped from the <a href="https://www.sec.gov/Archives/edgar/data/0001583648/000119312517154966/d391243d8k.htm">deal's original</a> $2.1B to $5.4B <a href="https://www.otcmarkets.com/filing/html?id=14982384&guid=NW-UkaZlBdFoGyh#MAY2021_HTM">in May 2021</a>, and it wasn't even disclosed in a filing that I can see, except for the <a href="https://www.otcmarkets.com/filing/html?id=14982384&guid=NW-UkaZlBdFoGyh#MAY2021_HTM">May investor presentation</a>. Even the <a href="https://www.otcmarkets.com/filing/html?id=14865228&guid=NW-UkaZlBdFoGyh#PIRSAPRIL2021PRESENTATIO_HTM">Apr 2021 investor presentation</a> still shows the $2B number. So AstraZeneca signed on a deal in 2017 and then in <a href="https://www.sec.gov/ix?doc=/Archives/edgar/data/0001583648/000162828021006061/pirs-20210329.htm">Mar 2021</a> made another milestone payment and invested $10M in PIRS. Then two months later their total potential milestone payments doubled. Sounds to me like things are going well.</div><div><br /></div><div>And Seagen too. It's been 3 years since that deal was signed and now they are <a href="https://www.otcmarkets.com/filing/html?id=14823950&guid=P4XUkePydbH-UMh">investing $13M</a> into PIRS at $3.51 per share. </div><div><br /></div><div>When I see this stuff my mind races. What happens if one of those programs hits and the payments start coming in? How about two? On top of the $8.8B in potential milestone payments PIRS is also entitled to royalties on all of those pograms. All that R&D spend must bring a steady stream of potential.</div><div><br /></div><div>I'm surprised the stock isn't higher. The Genentech news pushed it up to 6 from the mid 2's and it's now fallen back to ~$3.50. The stock is the same as it was a year ago when the total potential milestone payments was $3.8B. Now that total is $8.8B which is 32x the market cap. </div><div><br /></div><div>The risk here is the treatments don't work. The milestone payments don't come and PIRS has to dilute to keep the lights on. They've been losing money forever and that may continue. Downside is I lose the whole investment. A skeptic could look at my price chart above and ask we haven't made it to the promised land yet. </div><div><br /></div><div>But what is the ceiling on this stock? It's higher than you can see with the naked eye, right? It's huge and that's why this is my kind of situation. Sure it might get cut in half if results don't come in. But on the other hand I could see this going up 10x, 20x, 30x. Feels like there is just too much going on for this stock to stay at $3.50. If I look out 5 or 10 years I have a hard time imagining the stock doesn't at least see double digits. </div><div><br /></div><div>You know I like a good <a href="http://www.nonamestocks.com/2021/04/noname-annual-performance-2020-2021.html">stock spike</a> to sell into but PIRS is more than that. We might get spikes as we saw the other day when the Genentech deal was announced, but I'm hoping for business results. If PIRS can perform this is going way up.</div><div><br /></div><div>Potential with a capital P.</div><div><br /></div><div>--Dan</div><div>Disclosure: long PIRS</div></div>Dan Schumhttp://www.blogger.com/profile/05728696891530868697noreply@blogger.com33tag:blogger.com,1999:blog-754894216207950592.post-61796836606379745652021-04-18T22:17:00.006-07:002022-01-01T16:16:15.823-08:00NoName Annual Performance 2020-2021<p>It's been a great year in NoNameStocks land. I'm up 35.7%, giving me a 50.3% CAGR since I bought my first stock 8 years ago. </p><p>You can read my past annual performance posts <a href="http://www.nonamestocks.com/p/portfolio-performance.html">here</a>. </p><p><span></span></p><a name='more'></a><p></p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiqBeA_FfHkWPkSVNGT0F445sQYFbNbfK10LdxyyTgvNvsqLDTqW8iGBWf6GQ7rD1A72AMoqQGsOd9aCMveU4TvK0T3lu3qSmVKrIZBoK-uI9X2EGUxNt2TA2ffgKNFzvxjozd3XefoZmt2/s414/Screen+Shot+2021-09-07+at+4.16.09+PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="414" data-original-width="400" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiqBeA_FfHkWPkSVNGT0F445sQYFbNbfK10LdxyyTgvNvsqLDTqW8iGBWf6GQ7rD1A72AMoqQGsOd9aCMveU4TvK0T3lu3qSmVKrIZBoK-uI9X2EGUxNt2TA2ffgKNFzvxjozd3XefoZmt2/w386-h400/Screen+Shot+2021-09-07+at+4.16.09+PM.png" width="386" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh0bytK2AvEjHHTTR4ZPqNKXW49lb4x0HoKLjnI2-PcD_rG2utxXKHwE7PKiWiHm0U4YAK8gj2jIIWEZ4hGFhyphenhyphen5-ZrSKHIpCAa1veshs_qV7Xq_MJ8Eo_9ZwugbL6iwTxsFh_y4Sq6rdaJM/s912/Screen+Shot+2021-09-07+at+4.16.18+PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="568" data-original-width="912" height="398" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh0bytK2AvEjHHTTR4ZPqNKXW49lb4x0HoKLjnI2-PcD_rG2utxXKHwE7PKiWiHm0U4YAK8gj2jIIWEZ4hGFhyphenhyphen5-ZrSKHIpCAa1veshs_qV7Xq_MJ8Eo_9ZwugbL6iwTxsFh_y4Sq6rdaJM/w640-h398/Screen+Shot+2021-09-07+at+4.16.18+PM.png" width="640" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: left;">Below is my portfolio allocation. You can compare back to <a href="http://www.nonamestocks.com/2020/04/noname-annual-performance-2019-2020.html">last year</a> to see what's new. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghPEiDsF7h672hNas3bb5NlJ4VhjWKA-LaV_N5a2hIrUn8PCdzh4xiP3vUbIOlbj3FnyPtBbYn7wdpNBbCVJNsGPzmxLAieCN9Ma0yXO50WRXF7A49tkQIcLRsAmw2AUeewkmbYEl7G8BB/s1470/Screen+Shot+2021-04-18+at+8.05.30+PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="868" data-original-width="1470" height="378" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghPEiDsF7h672hNas3bb5NlJ4VhjWKA-LaV_N5a2hIrUn8PCdzh4xiP3vUbIOlbj3FnyPtBbYn7wdpNBbCVJNsGPzmxLAieCN9Ma0yXO50WRXF7A49tkQIcLRsAmw2AUeewkmbYEl7G8BB/w640-h378/Screen+Shot+2021-04-18+at+8.05.30+PM.png" width="640" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: left;">Today I'm filled with gratitude and pride. Getting <a href="http://www.nonamestocks.com/2018/07/the-intelligent-investing-podcast.html">laid off in Jan 2013</a> pushed me into the financial world. </div><div class="separator" style="clear: both; text-align: left;">Growing up I had done what I thought required: I did well in school and got a good job. My performance reviews exceeded expectations. I was supposed to be all set, but missing in that singular vision was diversification and financial independence. My family and I were locked up by the golden handcuffs. As I started a new 9-5 engineering job I also began a financial path with no clarity but full of hope. My heart driving towards a light at the end of the tunnel. With much help I am almost there. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">My biggest win from the past year is buying a house. 100% of the down payment paid for with stock gains!! My engineering career has afforded us a very comfortable life but that life comes with a price. It's a 40 year savings plan you can't draw from until your kids are long gone and your body is tired. You're constantly on the edge of a downsizing or company change in direction. I'm proud to say my stock gains have outpaced my engineering compensation in each of the past 4 years.</div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Thank you to all of you for helping me along my path. Thank you for reading, thank you for the comments and the ideas. Huge thank you to my mentor for the education and patience, thanks for always responding. And thank you to <a href="http://www.nonamestocks.com/2020/04/noname-annual-performance-2019-2020.html">HEMA and BMRA</a> for the down payment. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Ok enough with the sappy stuff, let's see some charts!! </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;"><b><u><span style="font-size: large;">UUU</span></u></b></div><div class="separator" style="clear: both; text-align: left;">We can file this one under winner and loser. You may have heard me talk about UUU <a href="http://www.nonamestocks.com/2019/04/noname-annual-performance-2018-2019.html">before</a>. It was small and cheap but losing money (sound familiar?...). Over the years I've sold into those spikes a few times as the stock moved sideways and down. Over the summer I sold into this wonderful rise near $4. Not bad, right? </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhk0480jYdbhcvwfVhbJhaXSbSBFnpnOTpf8W5mPpXlT1is-OHcLQrH4S13jOrXXl4j1XDzfY_aZcgYJ4qu1tXItrpm2IcXIC4UBsa4VW0d9i0EP983ddKN6APuukweecIx9Hpu5lKjmxz5/s1492/Screen+Shot+2021-04-18+at+7.22.01+PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="524" data-original-width="1492" height="224" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhk0480jYdbhcvwfVhbJhaXSbSBFnpnOTpf8W5mPpXlT1is-OHcLQrH4S13jOrXXl4j1XDzfY_aZcgYJ4qu1tXItrpm2IcXIC4UBsa4VW0d9i0EP983ddKN6APuukweecIx9Hpu5lKjmxz5/w640-h224/Screen+Shot+2021-04-18+at+7.22.01+PM.png" width="640" /></a></div><br /><div class="separator" style="clear: both; text-align: left;">Well not so fast. What has happened since is why I try to hold out. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgHQp6snHEPkQT2SBRz-i6aemY2kkM9AR9XNj6zgTk4oBYsMJQyFsSQC49KfA-mJbIhcMmkSpzgPu3wumbX1MYRTZFnb7eRpCq2x5kcn5kwZ4FqJGROcR1yEGqk6dYkd-DjE8h_IotgAKJZ/s1496/Screen+Shot+2021-04-18+at+7.26.46+PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="534" data-original-width="1496" height="228" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgHQp6snHEPkQT2SBRz-i6aemY2kkM9AR9XNj6zgTk4oBYsMJQyFsSQC49KfA-mJbIhcMmkSpzgPu3wumbX1MYRTZFnb7eRpCq2x5kcn5kwZ4FqJGROcR1yEGqk6dYkd-DjE8h_IotgAKJZ/w640-h228/Screen+Shot+2021-04-18+at+7.26.46+PM.png" width="640" /></a></div><br /><div class="separator" style="clear: both; text-align: left;">That rise I sold into doesn't look so impressive anymore does it. UUU had made a fundamental change I underestimated. They sold off the money losing JV and put up a $0.31 quarter in September. Not bad for an ugly junk stock that was at $0.50 only 6 months prior. I made 4x and missed out on 4x more. On top of that I had let the position size get too small so my gain didn't have as big an impact as it should have. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">One of my challenges of the past year, which I still have not sorted out, is how to devote enough time to stocks while working from home. I should have been on top of UUU. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;"><u><b><span style="font-size: large;">HYDI</span></b></u></div><div class="separator" style="clear: both; text-align: left;">This one could be called a missed chance. A year ago the stock ran up from $0.80 to $3.00 on covid sanitizer spray hopes and I did nothing. Now the stock is back in the $0.80s. <a href="http://www.nonamestocks.com/search/label/HYDI">HYDI</a> was my largest holding during that peak and now it's middle of the pack. The company has fallen behind on filings and any stock drops in the void of darkness. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj82d8LrqBP9FdZtcUIw3c9SWiGNR7fZgssyk4poBs1KIFoGXJ9zRknkXBhDXOeAA_Ml9eJ2LAftzL3-c037uvdyIDII_yNulSjsvf8yGI-QgZ9lcUp-C9-wOQXy95Gc7k7udPMvBaKH014/s1180/Screen+Shot+2021-04-18+at+7.57.12+PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="684" data-original-width="1180" height="370" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj82d8LrqBP9FdZtcUIw3c9SWiGNR7fZgssyk4poBs1KIFoGXJ9zRknkXBhDXOeAA_Ml9eJ2LAftzL3-c037uvdyIDII_yNulSjsvf8yGI-QgZ9lcUp-C9-wOQXy95Gc7k7udPMvBaKH014/w640-h370/Screen+Shot+2021-04-18+at+7.57.12+PM.png" width="640" /></a></div><br /><div class="separator" style="clear: both; text-align: left;">The main reason I didn't sell HYDI into that rise was the low volume. Even though the rise was only over a month it was still sort of slow and steady. When a stock is just walking up I have a hard time selling. If it would spike from $1 to $3 in a day I'd likely sell depending on the news but when it's moving a little bit every day it's hard to say when it'll end. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">I always wonder what's next. What if more news was on the way? What if a big order was coming? What if a $0.30 Q was coming to HYDI as it did for UUU?</div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;"><b><u><span style="font-size: large;">CEMI</span></u></b></div><div class="separator" style="clear: both; text-align: left;">Here's another missed opportunity. I <a href="http://www.nonamestocks.com/search/label/CEMI">wrote up CEMI</a> in Sept 2020 at $3.51 and immediately the stock started a rise. My thesis was a single press release would drive a big spike to sell into. With spikes it's the percent movement that matters, not the absolute dollar value. A high volume spike gives you a very high chance of a lower price tomorrow so you might as well sell today. With a slow rise you don't have that certainty so why sell. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">As CEMI rose through $4 and to $5 I started licking my lips. Any day now the FDA news would come and I'd get a spike. I was sure of it, why else would it be moving? I'm expecting a 100% spike and this slow rise was just raising the floor. As the stock moved up through $7 and to $8 I could see double digits. If the press release would have come I would've sold in a heartbeat and realized a 4x gain. But alas it was not to be and the stock fell all the way back down. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">A few weeks ago the stock was back down and the <a href="https://www.otcmarkets.com/stock/CEMI/news/story?e&id=1854505">press release</a> came. I got my spike and sold into it. I didn't catch the peak but not a bad gain and I was out at $5. Now the stock is back where it started and after things settle I may buy back in. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Funny how it worked out. I got my spike and made some money but missed out on a lot more because I didn't sell at the peak. Another stock seemingly held too long.</div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhVveETseypBVp6swwd4qkzJJvUgyZFstiB2_cQ3kIznecTs4_s44bsYksZj1a7P17FevmxYSvsIeOKqiMCW3rgMc9Otvig57Zg6BCtSe3UGrn67RFGF4DVAIjWZiW2K54vEqyhFtQETjb6/s1488/Screen+Shot+2021-04-18+at+8.19.14+PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="566" data-original-width="1488" height="244" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhVveETseypBVp6swwd4qkzJJvUgyZFstiB2_cQ3kIznecTs4_s44bsYksZj1a7P17FevmxYSvsIeOKqiMCW3rgMc9Otvig57Zg6BCtSe3UGrn67RFGF4DVAIjWZiW2K54vEqyhFtQETjb6/w640-h244/Screen+Shot+2021-04-18+at+8.19.14+PM.png" width="640" /></a></div><br /><div class="separator" style="clear: both; text-align: left;"><b><u><span style="font-size: large;">EKCS</span></u></b></div><div class="separator" style="clear: both; text-align: left;"><a href="http://www.nonamestocks.com/search/label/EKCS">EKCS</a> is one of my best performing stocks all time, percentage wise. I'm up around 4000%. Another stock I've held for years, and also another stock I've missed sales on before. Recently they <a href="https://www.otcmarkets.com/stock/EKCS/news/Electronic-Control-Security-Inc-Enters-into-Teaming-Agreement-for-a-Multi-Million-Dollar-Border-Project-in-North-Africa?id=290534">announced</a> a huge contract, shooting the stock up about 700% in a day and it has held up. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Take a look at this 5 year chart. What a beauty. If you ever hear me talk about how a single contract or press release can dramatically change the value of a tiny company, this is your example. </div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg_V67F74wbRHLuh46nH4Pu4sdiuTfp0v6Zko5PzRKlRITNfiO-1Q48eXfCtzdLfui7zU0vI8yG02dKuH8qkK5PSxDVxLneZSLLRG-11zesoTD4R88eKfgJqUjLcoZX-y9SXyfC58TqBcDT/s1042/Screen+Shot+2021-04-18+at+9.00.58+PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="766" data-original-width="1042" height="470" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg_V67F74wbRHLuh46nH4Pu4sdiuTfp0v6Zko5PzRKlRITNfiO-1Q48eXfCtzdLfui7zU0vI8yG02dKuH8qkK5PSxDVxLneZSLLRG-11zesoTD4R88eKfgJqUjLcoZX-y9SXyfC58TqBcDT/w640-h470/Screen+Shot+2021-04-18+at+9.00.58+PM.png" width="640" /></a></div><br /><div class="separator" style="clear: both; text-align: left;">But there's more in this chart. That jump in early 2018 is the lesson of patience. Just look at how dramatic it was at the time. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjV3RGQBUwCY2T4F2iGhFFUtVqb8Kk7-TIXH4BR7dgW-Y_fuaG8Bz5-fT0c-yCdpl6kM0uv3yuFm2MJ_gBFy2LTV8yHY1yVybjtVdEWSsqwF127JvVr36H6d8vfx6CY-cEBdt3GeqiJEfQR/s1042/Screen+Shot+2021-04-18+at+9.05.19+PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="822" data-original-width="1042" height="504" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjV3RGQBUwCY2T4F2iGhFFUtVqb8Kk7-TIXH4BR7dgW-Y_fuaG8Bz5-fT0c-yCdpl6kM0uv3yuFm2MJ_gBFy2LTV8yHY1yVybjtVdEWSsqwF127JvVr36H6d8vfx6CY-cEBdt3GeqiJEfQR/w640-h504/Screen+Shot+2021-04-18+at+9.05.19+PM.png" width="640" /></a></div><br /><div class="separator" style="clear: both; text-align: left;">I missed that spike but held onto my shares. I bought more as time went on. Patience and optimism paid off and now I'm way up on EKCS. You know, that EKCS 2018 spike doesn't look too different from what HYDI did this past year... </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">This is why I hang onto these tiny little stocks. This is why I didn't sell CEMI or HYDI at their peaks. I am trying to make life changing money and I see opportunities in my future. Hopefully I can grab them.</div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;"><b><u><span style="font-size: large;">IOMT</span></u></b></div><div class="separator" style="clear: both; text-align: left;">Now for the craziest stock movement ever. You may remember I <a href="http://www.nonamestocks.com/2017/01/iomt-market-cap-less-than-gallon-of-gas.html">wrote up IOMT</a> when the market cap was $2 about 4 years ago. The stock is super illiquid, trading only a handful of times per year. I have only got shares 3 times over the past 5 years even though I've had an open order for probably a third of that. The stock has moved between a very small fraction of a penny (that's how you get a $2 market cap) up to about $0.10. Months would go by without any transactions. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Well about 2 months ago shares started trading. IOMT has seen more volume in the past couple months than the past 8 years. The stock has gone as high as $1.50! I wrote up the stock at $0.000001 (not a typo) and bought most of my shares at $0.01. Let that sink in. </div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjjO1rys4RWQF3RNL1sidN4iWskauSI4EZdcVCx_IkokQBKO0KHccs9ZGGIjKwJT81ZcNgjoaJkFL0CvwO432ztxa61lX9b_iBdWIJrhbkE5PMF9lwKIWUaH1fkuilNHFyfhIXKiSyUwuzp/s1050/Screen+Shot+2021-04-18+at+9.13.48+PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="782" data-original-width="1050" height="476" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjjO1rys4RWQF3RNL1sidN4iWskauSI4EZdcVCx_IkokQBKO0KHccs9ZGGIjKwJT81ZcNgjoaJkFL0CvwO432ztxa61lX9b_iBdWIJrhbkE5PMF9lwKIWUaH1fkuilNHFyfhIXKiSyUwuzp/w640-h476/Screen+Shot+2021-04-18+at+9.13.48+PM.png" width="640" /></a></div><br /><div class="separator" style="clear: both; text-align: left;">Historically they file their annual in April so my optimistic side was running wild. Maybe there's good news coming that has leaked out. Maybe we have a buyout. I've always thought the stock might be worth a buck or two in a sale. I emailed the company and they didn't even know the stock had moved, lol. There's no reason the company knows of. No news to report and no idea why anyone would be buying. In fact their annual will be coming out in the fall due to Covid just like last year. </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">So here I am with another stock that has moved up and come back down. I haven't sold any IOMT and only time will tell if that's a mistake. Why would someone be buying a penny stock for $1.50? </div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">--Dan</div><div class="separator" style="clear: both; text-align: left;">disclosure: long all the stocks in my portfolio picture</div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Subscribe to all NoNameStocks posts here: <a href="https://t.co/PJxHMrpOQQ">https://forms.feedblitz.com/erd</a></div><p></p>Dan Schumhttp://www.blogger.com/profile/05728696891530868697noreply@blogger.com37