Value for the Patient at Globex

I don't normally look at companies like this but Globex Mining Enterprises (GLBXF) is not what you think.  They have an incredible balance sheet with $7.5m USD cash + $13.5m in investments.  The CEO hates debt so they have none, carrying only a couple hundred grand in current payables.  

As I type, the stock is at $0.75 USD giving a market cap of $42m.  Book value is $24.3m with $20.8m of that being cash + securities.  They own their buildings outright and carry those around a million.  Add that up and the market is valuing the operating company at about $20m.  

This is where it gets interesting because Globex is really a hidden balance sheet play.  The company owns 252 mining properties and 106 mining royalties, all of which are carried at zero because the frugal CEO doesn't want to pay auditors for assessments.  Your job today is decide if you think those 252 properties and 106 royalties are worth more than $20m USD.  

Opportunity Among Disfunction at PGNT

PGNT sits at $5.70. Trading under half of book value, less than a tenth of revenue. Market cap of $9.9m with net income of $1.1m, $4.7m, $3.4m, $3.6m the past four years. $7.2m in cash + securities. Real estate worth more than the $3.3m it's carried for on the balance sheet.

You've got to be pretty hated to be that cheap.

ETCC is Executing

I first wrote up ETCC in early 2019 with the stock at $0.58, having fallen from a high around $2 a year prior.  When the company stopped filing in 2020 I held and waited.  In mid-2021, with the stock in the $0.30's, I bought more as the company released new orders and told investors they would be getting current with financials.  

With a market cap of $2m in Feb 2023 the company announced an $85m contract.  As the stock spiked 4x up to $2 I sold nothing, thinking if that contract actually follows through it's going higher.  

As the stock fell back below $0.50 I bought more.  Fast forward to now and we have the stock at $1.78 with a $17m market cap.  Backlog is $109m.  The company has earned $0.09, $0.08, $0.17 the past three quarters, totalling $5.5m. 

If you've ever wondered how Buffett found a stock at PE = 3 here it is.

GeoInvesting Interview

Recently I was interviewed by Maj Soueidan of GeoInvesting.  This is my second time on Maj's podcast and it was great fun.  Easy to talk with Maj as we share a lot of the same interests in stocks.  

We talked a bit about my history and process then got into chatting about a lot of different stocks.  Some I've written about before like IEHC, EKCS.  Some new ones I haven't mentioned much GSFD, SLNH/SLNHP.  Maj also brought up a number of stocks I don't own like MOJO, TXRP.  

IEHC is Cheap Again

IEH Corp (IEHC) was the second stock I wrote up on my blog way back in 2015.  Coincidentally that post is how I met my mentor so it carries a special place in my heart.  

The stock rose from $6 to $25 over several years of solid results only to fall all the way back due to Covid and missed filings.  The stock only became tradeable again a few months ago so here's your chance with the stock at $6.30.

IOMT at a PE of 1/3

I saw a trade on IOMT the other day which reminded me to check if they filed their annual. Sure enough there it is. EPS of $0.09. Book value per share of $0.34. Revenue per share $1.78.

Stock price $0.03

Calling PGNT Shareholders

If you are a holder of Paragon Technologies (PGNT) stock please email me.  

I am not happy with how much money and effort has been spent on OPTT.  Also not happy that Sham's dilution proposal to use this way-too-cheap stock as currency.  I will be voting no to everything on the proxy.  

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.