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 :)