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!

Major Change for SOFT, WPCS, MRCR

Tiny companies meander through life with peaks and valleys along the way.  These three stocks have all had major announcements recently which perfectly illustrate life in this unloved corner of the stock market.  Rather than the good, the bad, and the ugly I think we have the good, the bad, and the who knows.  

I like to buy tiny companies with potential.  Sometimes that potential turns into reality (as seems to be happening with MRCR), sometimes the potential gets replaced with other potential (WPCS), and sometimes the potential turns into a fire that burns the company to the ground (SOFT, maybe).  MRCR and WPCS are definitely actionable if you think there's value to be had while SOFT is so illiquid and uncertain it may not be. 

WPCS is a low voltage electrical contractor who recently announced they are merging with DropCar.  MRCR is a construction business that de-registered from the SEC in 2004 then filed reports with OTC Markets for a decade before disappearing from the public eye in 2014.  Just today MRCR posted reports to the public for the first time in 3 years and got removed from the dreaded OTC Markets Stop Designation List.  SOFT was selling off business lines a year ago to concentrate on a new high potential division...then a few days ago they put out an 8k announcing everything is for sale including their domain listing and NOLs.

WPCS undergoes major restructuring

WPCS International (WPCS) has been in a death spiral for the last decade, falling from around $2000 per share in 2010 to around $1.50 now (split adjusted).  That is about 99.9% of the market cap lost.  Amazing.

I suppose there's two ways to look at that chart.  One view is of a falling knife to avoid.  The other view is of opportunity.