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.
You can read my past annual performance posts here.
I did most of my PGNT buying a year ago and with the stock up over 200% I'm still adding. This one may keep going so let's take a look.
It's been a while since we played our favorite game, Price That Stock! Here we go. No looking at the stock price before playing. Humor me
I recorded a fun podcast yesterday with Gary Ribe and Eric Furey, In the Market Trenches. I had a great time talking about my approach, how I do things, and why I do things. We did a little deep dive into two strange, yet somehow normal in the dark space, stock stories: EKCS and VCON.
For all my negativity and rants towards companies de-registering from the SEC, sometimes it does help operations. It definitely saves them money and enables them to spend more time on the business.
The real risk is communication. If they cut the world off the stock can drop to nothing but as long as they keep talking good things can happen.
Dynasil (DYSL) de-registered from the SEC in the fall of 2019 with the hope of saving $900k per year. They filed their last 10k in Dec 2019 and told shareholders to only expect an annual report moving forward. A week ago they put out the report and the numbers back up their motivation for de-registering.
In 2011, the "development stage" Harbor BioSciences HRBR lost 3.8M which was an improvement over the $6.6M lost in 2010 and $15.6M lost in 2009. Not pretty and with a market cap of only $6.5M, not inspiring. Amun LLC came along with a cash infusion of $2.8M to save the day if only shareholders will approve the following conditions:
Wow. Amun wanted the NOLs and to disappear. The transaction was approved and HRBR stopped communicating after putting out one last 10k in Jan 2012.
After 8 years of muted darkness Harbor Diversified (HRBR) put out an 8k in Apr 2020 with one of my favorite lines ever:
as of January 1, 2020, which is the first day of the Company’s current fiscal year, the Company determined it no longer met the eligibility criteria under Rule 12h-3 of the Exchange Act to suspend its reporting obligations under Section 15(d) of the Exchange Act. As a result, the Company determined it is required to file the Annual Report
Shareholders made them file again! So amazing and here's an article. I don't know the details but it seems they were taken to court and forced to come back to the light. Whoever did this is my hero. They've since put out a 10k showing $69M cash, $78M book value, and $263M annual revenue. They earned $4.2M in the latest 10Q. The market cap is currently $12M...sound interesting?
A couple days ago I was a guest on the Avoiding the Crowd podcast with Maj Soueidan of GeoInvesting. It was a ton of fun! We talked about a lot of stocks I own and my process and the otc/dark space. Great talking with someone who knows all these little stocks.
I like to buy the forgotten, lonely, and broken then sell the exuberant and frothy. As a once treasured stock tarnishes the masses move on to the next shiny toy, leaving destruction in their wake. That's when I get excited. I try to find what has been tossed aside, knowing that if the sun hits just right the sparkle may bring them back.
Chembio Diagnostics, Inc (CEMI) is a medical diagnostic test developer. On Mar 16, 2020 the stock closed at $2.36, it's lowest point in 9 years. Four days later CEMI announced a $4M order for a COVID-19 test. Eleven days after that CEMI launched their DPP COVID-19 test, triggering the highest volume day ever. The stock peaked at $15.89 a month later.
Alas it was not meant to be as the FDA rejected their test on June 17 and the stock instantly gapped down from $10 to $4. What a change of heart.
CEMI is not giving up. On July 6 they announced a US FDA contract to develop a COVID point-of-care antigen system. They also announced they are revising the system and will seek EUA approval from the FDA for their system. The question is what happens if they get that FDA clearance.
Encision...has developed and markets innovative technology that provides unprecedented outcomes and patient safety in minimally-invasive surgery. We believe that our patented Active Electrode Monitoring (AEM®) Surgical Instruments are changing the marketplace for electrosurgical devices and laparoscopic instruments