One I own but haven't seen mentioned in the article or comment section is Decker Manufacturing (DMFG). Midwestern manufacturer of nuts and bolts. Trades at around book, little debt. Income growing and trades at a P/E of around ~6. Have you ever evaluated this one?
My 2 cents on WELX: I held this for a brief time in 2017 and sold with an insignificant loss. At that time, their stated business was ""Winland provides solutions that protect perishable assets against loss and ensure data-logging compliance for organizations with regulated storage conditions. Winland's cloud-based Critical-Environment Monitoring Solution delivers early incident detection, notification, standardized response protocols, reporting, and the remote management of critical-condition environments." This sounded interesting, though I was concerned that a full 50% of their sales was to a single distributor (Anixter) and they sold some of their stuff on Amazon, with very few reviews. It sounds like they still do a bit of this business? I invested in NSSC instead, until early last year.
They also had an investment in a travelling Beatles museum - not as cool as the Thing, but still...!
I have a note that in 2005 they were a supplier of some sort to the Select Comfort mattress folks, then did a complete makeover.
Anyway, the very thought of the crypto thing gives me hives. But they sure are wide-ranging.
Nice business. Great margins and return on capital. I have some concerns over their ability to grow revenue much in the short term barring some kind of market reform that encourages OTC listings.
Check out PDX - under the radar way to play the Venture Global IPO for next week. 10% discount to NAV. NAV has a conservative valuation for the IPO. IPO range is stale compared to Cheniere (ticker LNG) which rallied 10% this week. And the IPO is likely to be hot, pricing during inauguration week.
Great post Dave, appreciate the list and your insights.
I think you're really spot on with there being much less investable OTC ideas these days. I always go back to some of those old OTCAdventures or Oddballstocks posts back many years ago and see the kinds of ideas that were out there and compare them to today and it's really hard to underwrite many of these ideas now. Even with banks I find some of the ideas pretty difficult either on price or on the balance sheet. I spend a good deal of time looking in the UK and Japan and I rarely find a small/OTC idea in the US that I would take over ideas I find in either of those countries (currency issues aside).
I'm banging the drum on EXSR. People love to complain about fake HTM accounting but when banks mark their whole book AFS they get no credit for it. Great franchise, history of steady TBV growth, .6x book too cheap.
I use Endo’s products. Like a lot. All the time. Do you have any extra btw?
This is just like twitter used to be
<will.ferrel.imjustlivingthedream.gif>
One I own but haven't seen mentioned in the article or comment section is Decker Manufacturing (DMFG). Midwestern manufacturer of nuts and bolts. Trades at around book, little debt. Income growing and trades at a P/E of around ~6. Have you ever evaluated this one?
I own some. It's a nice little business and cheap.
Rumor has it that Percy is negotiating a purchase of The Thing, so we may soon have a chance to see its true value.
The new logo looks great
Always enjoy your work, Dave!
My 2 cents on WELX: I held this for a brief time in 2017 and sold with an insignificant loss. At that time, their stated business was ""Winland provides solutions that protect perishable assets against loss and ensure data-logging compliance for organizations with regulated storage conditions. Winland's cloud-based Critical-Environment Monitoring Solution delivers early incident detection, notification, standardized response protocols, reporting, and the remote management of critical-condition environments." This sounded interesting, though I was concerned that a full 50% of their sales was to a single distributor (Anixter) and they sold some of their stuff on Amazon, with very few reviews. It sounds like they still do a bit of this business? I invested in NSSC instead, until early last year.
They also had an investment in a travelling Beatles museum - not as cool as the Thing, but still...!
I have a note that in 2005 they were a supplier of some sort to the Select Comfort mattress folks, then did a complete makeover.
Anyway, the very thought of the crypto thing gives me hives. But they sure are wide-ranging.
I remember them funding that Beatles memorabilia traveling exhibit! I think the results were underwhelming.
My recollection is that the Beatles delivered a donut.
Wat about OTC Markets (OTCM) ... which trades on the OTC Markets.
Nice business. Great margins and return on capital. I have some concerns over their ability to grow revenue much in the short term barring some kind of market reform that encourages OTC listings.
Perhaps some of these missed the list because you own them, but AMNF, CZBS, FFBB, and QEPC are all interesting.
I'll second the word on AMNF. I've been a happy investor for several years.
Definitely some great names. I own a few so I did not mention them. For these I was definitely reaching a tier below the best quality OTC companies.
The THING!!!
Nice to see you back on here, Dave 👍🏻
Thanks! I have been busy. I will try to be more active now that things are calming down.
Check out PDX - under the radar way to play the Venture Global IPO for next week. 10% discount to NAV. NAV has a conservative valuation for the IPO. IPO range is stale compared to Cheniere (ticker LNG) which rallied 10% this week. And the IPO is likely to be hot, pricing during inauguration week.
I like $MUEL the most on this list.
Great post Dave, appreciate the list and your insights.
I think you're really spot on with there being much less investable OTC ideas these days. I always go back to some of those old OTCAdventures or Oddballstocks posts back many years ago and see the kinds of ideas that were out there and compare them to today and it's really hard to underwrite many of these ideas now. Even with banks I find some of the ideas pretty difficult either on price or on the balance sheet. I spend a good deal of time looking in the UK and Japan and I rarely find a small/OTC idea in the US that I would take over ideas I find in either of those countries (currency issues aside).
Wish you best of luck on the new fund. Thanks!
I am relieved to find that your list does not include the OTC stock I have been eyeing. I do not want the competition!
I'm banging the drum on EXSR. People love to complain about fake HTM accounting but when banks mark their whole book AFS they get no credit for it. Great franchise, history of steady TBV growth, .6x book too cheap.
Do you have any updates on the brokers that allow buying grey and dark stocks
http://www.nonamestocks.com/2022/09/brokerages-to-buy-dark-stocks.html?m=1
Owned EXSR, MUEL, and BURCA, but curiously sold out of all 3 with minimal gains. Quite sleepy the lot of them…except MUEL of course :/