Key Metrics
45% discount to NCAV
No long-term debt
A possible revenue catalyst
I have been spending a lot of time on the smallest OTC stocks recently.
Not too long ago I made a list of the ~100 most interesting names. These are companies I think could become interesting if they get cheap enough.
Since then I’ve been working my way through the list to learn as much as I can about each one.
And I try to find things other people don’t know about yet.
While doing that, I noticed that for some stocks there is actually news that isn’t really mentioned in the filings, apart from maybe a small hint. Hence, no one knows about it.
Partly these are things like unconfirmed collaborations with other companies, or regulatory tailwinds, but partly they are also already confirmed relevant news that affects the company.
That’s the case with today’s stock.
Not long ago they filed an 8-K announcing that they hired a new Head of Operations.
So far, that’s not necessarily anything special.
But if you look at where he comes from, it gets interesting.
Before the switch, he was the President of a direct competitor. And the relevant part of that competitor shut down operations this year because the founder and CEO died.
The customers are now looking for a new home. And who would be a better fit than a company that does basically the exact same thing, and just hired the former president who knows all the customers, operations, and products inside out?
Combined with the operating leverage dynamics of the company, that could be quite good for future numbers. (Not to mention the stock is already trading 45% below NCAV.)
The stock price, however, reflects none of this.
And no wonder. The business is small, and no one really follows it.
I don’t mind.
I get to buy it cheap.
Here is the full story.