NoName Annual Performance 2023-2024

This year I gained 5.1%, bringing my CAGR to 33% since buying my first stock 11 years ago. I'm super happy and proud of my long term record, though losing to the S&P the past 4 years straight isn't great. I've been treading water recently and hopefully next year changes that.

Idea Brunch Interview with Edwin Dorsey

I was recently interviewed by Edwin Dorsey on Sunday's Idea Brunch! We talked about my background and why I do things the way I do. I try to explain my reasoning with examples whenever I can.

I had a lot of fun on this one and Edwin asked great questions to bring out the conversation.

Enjoy!

Full Circle

 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.  

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 podcasts here and here.

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 :) 

SPRS is Consistent, Profitable, and Cheap

Surge Components (SPRS) 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.   

The board owns over half the company and acts intelligently.  They build up cash and do the right things.  In 2017 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.  

No drama with this one and no shady management.  Even I stumble onto quality once in a while.  

SLGD is Becoming Something New

I first wrote up Scott's Liquid Gold, SLGD, 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.

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.

HAUP Courtroom Battle over DE State Law 220 Finally Done

We finally have HAUP 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!  

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!

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?".

Check out these lines from Plotkin's own lawyer!

"the undersigned believes it incredible that the Company will abide by any future Order from this Court or our Supreme Court" 

"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" 

"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"

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

Off Topic: The Firebird is Done!

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.

No stock talk in this post.  Just an old car hobby.

Attention Hydromer HYDI Shareholders

 Could all HYDI sharesholders please contact me at nonamestocksdan@gmail.com.  I'd like to chat.

Activism and Change at GVP

I bought into GSE Systems (GVP) a couple years ago due to change and here today I sit seeking more.  

In the past year the stock is down ~70% yet somehow the CEO's compensation went up 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.  

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.

There is activism from several parties.  Ankur Saggar has written several board letters and organized a website gvpshareholdersforchange.com.   SpearPointCapital has posted a deck and pushes for others to vote against the status quo.  Silverback is trying to get on the board.

POLXF Buyout Arb

 POLXF announced a buyout from BioSpectra 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.

NoName Annual Performance 2022-2023

This 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!

IVRO You Can Taste the Potential

Sometimes a stock just looks so good you have to buy.  InVitro International (IVRO) is tiny, profitable, and debt free.  The stock sits at a low after falling from a big rise.  

DYSL Tender

A few days ago DYSL put out a tender offer to buy back 54% of their common at $2.49.  I first wrote up the stock at $0.81 and my portfolio has been ugly recently so it feels great to have a win.  

I'm not sure yet what to do so let's run through some scenarios.

Deleted Twitter

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.

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

--Dan

Brokerages to Buy Dark Stocks

 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 new SEC rule 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.  

This post is a summary of the few brokerages that still allow you to buy non-filing dark stocks.  

If anyone has found a solution please comment or send me an email.  

Keeping the Faith in BDRL

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?

Blonder Tongue Laboratories (BDRL) 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.  

QDLC Finally Comes Through

I first wrote up QDLC in 2015 with the stock at $0.20.  It was dark and low, forgotten by the market.  

The other day a merger was announced for $2 per share.  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.

NoName Annual Performance 2021-2022

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.  

You can read my past annual performance posts here.  

MFCO Cheapened up Thanks to the SEC

Microwave Filter Company (MFCO) filed an annual the other day showing the following per share numbers:

• rev $2.01
• book value $0.76
• EPS $0.10

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.

ADDC Tender

ADDC 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.

Anyone out there who owns shares please email me nonamestocksdan@gmail.com. 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).

You can find the official offer and latest annual report here. Table of numbers is below