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?