Tuesday, August 6, 2019

Paging all HAUP Shareholders...

A year ago I wrote about HAUP breaking state law by refusing to show me, a shareholder, the company's financial statements.  Since then I have joined a group of shareholders to push for change.  We've sent the company multiple financial statement demand letters.  We've engaged a nano-cap activist who specializes in proxy battles.  We've talked with lawyers and are preparing ourselves for the next step.

This is an update and call to arms.  If you are a HAUP shareholder please send me an email: nonamestocksdan@gmail.com.  I want to know how many shares are held by people I know, how many votes might side with me.  No matter your position size please contact me.  Let's see how big we really are.

Monday, July 8, 2019

ECIA is on the Verge (Again...)

Encision, Inc (ECIA) is in the exciting field of surgical instruments.  This is one of those companies I get super excited about when I just read what they do.  From the most recent 10-k:

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

Saturday, June 22, 2019

My Brokerages: Fidelity, Schwab, ETrade

If you have been a reader for a while you know of all the brokerage drama I've had.  It's all due to the tiny dark stocks I like and the industry moving against them.  I'm sure it doesn't make the brokerages any money so I understand.  I'm happy to report I have brokerages that work great for me.

The latest news is Penntrade has shut down so I transferred those accounts to Schwab.  I love Schwab.  I now use Fidelity, Schwab, and ETrade.  I hope this is my last brokerage related blog post...

Monday, May 20, 2019

POLXF: A Business for Free

Polydex Pharmaceuticals, Ltd (POLXF) is a simple story.  They own their building worth ~$3M.  They have $1.6M in cash and a BV of $5.7M, yet the market cap is ~$3M.  This is one of many stocks I wish I owned more of.

You could shut down operations, sell everything, and turn a profit.  On top of that we have a business that did $4.9M in revenue last year with net income of $230k.

When you see a stock like this it's a dying business, or at least the public thinks it's dying.  Why else would it be priced less than hard tangible BV like that.  CVV is priced similarly.  You have to decide for yourself what may happen in the future.

Sunday, April 28, 2019

QDLC's Potential has Increased

I last talked about QDLC almost two years ago when a group of shareholder activists waged a proxy battle in hope of selling off the company.  When I first wrote about this one 3 1/2 years ago they were dark and hadn't communicated with shareholders in years.  The stock has risen from $0.20 to $1.50 then drifted back to the $0.30s.  Never a dull moment in the QDLC saga and that's not changing any time soon.

Three months ago in January QDLC won an $8M judgement in court.  We have a $3.9M market cap.  You do the math.

Let's have an update on QDLC.  For the backstory you can read my prior posts on QDLC here.

Wednesday, April 17, 2019

NoName Annual Performance 2018-2019

What a great year!  I'm up 74.3%, giving me a CAGR of 46.4% since I started investing 6 years ago.  What an amazing run it has been.

You can read more on my performance in past annual posts here.

Friday, January 18, 2019

ETCC and the Power of Change

A primary stock attribute I seek is change.  In uncertainty lies opportunity and the chance to catch lightning in a bottle.  Greenblatt hit the nail on the head with his best book, "You can be a Stock Market Genius."  A stagnant company leads to a stagnant stock so you should be searching for change.  Look for the opportunity.  Follow the money.

Big change is risky for a highly priced stock but at necessity at the lows.  A small company dependent on a single product will be forced to rethink everything if their customers find something new.  When a major customer moves on a company will scramble to survive.  Companies will try new products, acquire new businesses, sell to a competitor.

Big change leads to big stock movement and that's what I'm looking for.  Imagine a stock at a 35 year low cut in half over the past year.  Big change becomes almost binary, either the stock will go to nothing or it's a major win.  Hard to imagine much in between and the next step is is examining the change.

Environmental Techtonics Corp. (ETCC) is undergoing change in majority shareholder ownership.  In Sept 2017 they announced a review of strategic alternatives and the stock shot up from $0.60 to $2.  In Aug 2018 the 54.1% majority owner Gerry Lenfest died and in Oct 2018 his long time Lenfest Group CFO, Joy Tartar, took a seat on the ETCC board.  The stock has drifted back to $0.60...sound interesting?

Tuesday, November 27, 2018

The Good and Bad Sides of ESMC

Some people look for great companies with unbreakable competitive advantages.  Some will only buy if the history of profitability is secure and guaranteed to continue.  Others reject an accumulated deficit or buy only what is growing.

I steer clear of the masses in a search for the least competition.  I look for the beaten down...the hated, forgotten, and lonely.  In this area of the market only some companies will survive.  My bet is the winners will rise enough to cancel out the dead.  Most stocks I look at have problems.  There is always potential and there is always something wrong.  That's why we have opportunity.  All is not rosy and for sure there is a real risk of loss.

There are always two sides to the coin and ESMC is no different.  If you accept the truth you may see the opportunity.

Friday, November 16, 2018

CVV is too Cheap to Ignore

I first wrote about CVD Equipment Corporation (CVV) three years ago in Oct 2015 with the stock at $12.25.  That's a very high price for me and it has not worked out.  If given another chance I would not have bought at that price but what can you do.

The stock has now slid all the way down to $4.29 and it's a buy here for sure.  Recently I've been buying more and I may continue.  With tax loss season upon us this may very well get cheaper but it's got to be worth a double at least.

Friday, October 12, 2018

SEC Considers Blocking Dark Stocks

The SEC has a series of round table discussions to combat penny stock fraud.  One horrible proposal they discussed is, “If a company is a dark company and listed in the OTC market and hasn’t put out financials for six months, maybe it shouldn’t be quoted or offered to retail investors,”

This would mean death for dark stock investing.  The SEC is taking comments on these proposals as feedback on their Equity Market Structure Roundtables.  Tell them what you think.

Friday, October 5, 2018

Examples

Today I'd like to run through some examples of my stock purchases.  I've already blogged about these so nothing new on that front, but this will give you an idea how I go about buying stocks over the long term and why I buy when I do.

Let me try to tell you how I buy and why I buy.  What I do with winners and losers.  

I have 3 winners and 3 losers to run through.  Yay charts!

Friday, August 31, 2018

Sorry About the Lack of Comments

Quick housekeeping post.  I have been wondering why I got no comments for the past few months until a blog reader emailed me asking what's going on with his comments not going through.  I checked and there were a lot of comments waiting for approval...sorry everyone about that.

I have comment moderation turned on because I get a lot of spam comments.  Something happened and the feature that emails me when a comment is placed got broken.  I've just gone through and manually accepted a ton of comments.  I'll check directly like this from now on.

--Dan

Tuesday, August 28, 2018

PCYN is a Buy and Here's Why

Today's blog post comes to you from the land of the tiny and cheap.  If you're a follower of my blog you've heard this story before.  This company is pretty much my ideal: tiny, no debt, low share count, illiquid, high potential.

Procyon Corp (PCYN) is an extremely small holding company with one operating subsidiary: AMERX Health Care Corporation.  Current stock price is $0.18 giving a market cap of $1.5M.  Annual revenue is ~$4M and has risen 44% in the past couple years.

Cheap and tiny.

Saturday, August 25, 2018

FRTN is Why I Buy all These Junk Stocks

Fortran Corp (FRTN) stock has risen from $0.03 to $0.60 in the past few months.  With all the drama there could be more room to run or it may crash to zero.  This is a post to show you exactly why I buy the dying crap that I do.

This story involves shareholders successfully challenging a company to provide records in court.  We have nanocap activism resulting in the ousting of a shady CEO.  A fresh start and potentially bright future clouded by a bankruptcy petition...

Friday, July 27, 2018

The Intelligent Investing Podcast

I had the pleasure of being on the Intelligent Investing Podcast with Eric Schleien. This was the first time I've ever done a podcast and it was a lot of fun. Maybe we'll do some more in the future.  You can tell how nervous I was when I welcomed Eric to his own show...

Check it out here: intelligentinvesting.podbean.com

Monday, July 16, 2018

VII Becomes VCON

On June 19, Vicon Industries closed at $0.36 and it had been pretty flat around $0.40 for over a year.  The next day the company put out a press release announcing failure to comply with NYSE listing requirements and on July 12 the company changed symbols from VII to VCON as they moved from the NYSE to the OTCQB stock exchange.  

With no other news the stock has dropped all the way to $0.16, a loss of 56%.  I want you to ask yourself if a stock exchange name is worth half the company.

Friday, June 15, 2018

COMX Buyout

A buyout announcement came out this morning for COMX to be acquired by Zonal Hospitality Systems for 7.46 GPB = $9.91.  Shares are available now under $9 for anyone wanting to play the arb game.  I picked up more shares right at market open.

I first wrote about COMX in Apr 2016 with the stock at $1.60 and gave it a $6 value.  I gave COMX a $10 value in my most recent post in Feb 2018, what a guess!

Wednesday, June 13, 2018

HAUP Hides in the Darkness

There are various shades in the land of dark companies.  The brightest have de-registered from the SEC to save money and care enough about their shareholders to continue communication through their own website or otcmarkets.com.  Some companies lie in grayish middle ground where they will release info to shareholders only when asked.  The darkest of the dark don't  care about the stock price or wellbeing of any shareholder.  They hide in the shadows and communicate nothing.

Hauppauge Digital, Inc (HAUP) is one of the bad ones.  Their CFO, Jerry, told me they have de-registered and do not have to communicate.  I reminded him he is breaking state law by refusing to give financial information to a shareholder.  He uses the SEC as a scapegoat, claiming it will violate fair disclosure rules to send information to only one shareholder.  This is a gross misinterpretation and makes clear he does not care about us.

Still I hold shares and think the stock is likely cheap.  They recently put out the first press release in years.  They have redone their website.  As you can imagine the stock has dropped into the toilet and Jerry could care less.  I think the market cap is about a half million and I'd wager revenue is way higher than that.  This one is a gamble.

Thursday, April 26, 2018

CNGA Comes Back to the Light

Conair Corp (CNGA) de-registered from the SEC in 1995 and completely disappeared.  They did not file reports anywhere.  The stock sank to the bottom while shareholders wondered if the company was even alive.  CNGA stayed in the darkness for 22 years until filing quarterlies and an annual in Sept 2017.  Since then they have kept up with reporting and even put out press releases!  This is a major change of heart and where there's change there is opportunity, so let's investigate.

Wednesday, April 18, 2018

NoName Annual Performance 2017-2018

Another amazing year! I'm up 75.7% and that pushes my CAGR up to 41.3% since I started investing 5 years ago. I don't know how long this will last.