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LowIQinvestor

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    Any small cap Net Nets out there?

    in General Discussion

    Posted

    SXCL just delisted from NASDAQ.

    Mandated selling from small funds.

    Business is being valued at $0.

    Company will still post 10-Qs to website.

    Market cap = $128M

     

    " generated $11.7 million of adjusted EBITDA and have a strong balance sheet with $127.9 million of cash and marketable securities"

    It is time to get Very BULLISH !

    in General Discussion

    Posted

    " This is just short covering, not legitimate long term buyers".....says market pundit.

     

    I kid you not, my local radio station (large metro area) had a "stock market consultant" as a guest and he fielded questions from callers yesterday. The stock market consultant was talking all about technicals and saying he sees no reason to buy stocks unless the market rebounds (huh?). Then a caller asked how they can short auto loans..

     

    I've become more bullish!

     

    Happy friday

    It is time to get Very BULLISH !

    in General Discussion

    Posted

    Gun to my head, I think SDS does pretty well over the next several months. 

     

    BTW: SDS is a flawed instrument for expressing a long term negative view on the S&P 500. It works for very short term views...

    "ProShares UltraShort S&P500 (the Fund) seeks daily investment results that correspond to twice (200%) the inverse (opposite) of the daily performance of the S&P 500 (the Index)."

     

    I think a year from now, SDS could be down very substantially. 20 + %

    Any small cap Net Nets out there?

    in General Discussion

    Posted

    You might look at HCHC too, similar idea of a conglomerate that was taken over with NOLs and under new management. They have been building quite a lot recently.

     

    Thanks, I'm generally looking for Net/Nets with not much (if any) debt. I know, tough to come by...

     

    I just bought SXCL and plan to add to it if gets any cheaper than below net cash!

    Any small cap Net Nets out there?

    in General Discussion

    Posted

    Making money is much harder than losing money. I consider NOL's virtually worthless in most cases and if they begin to be valuable, they will be a minor part of the value in relation to the 'new' profits that created them. I also think of them differently between those NOLs where the people who lost the money are still in power vs those NOLs (like a new shell) where new management has come on board.

     

    That's how I am thinking about it as well.

     

    In the case of SXCL , the NOLs were generated by a different mgmt team. It was a shell but now has new operating cos in  oil/gas, sports and they own some publicly traded securities such as IGOI.

     

    SXCL is a sub of Steel Partners. They are buying back shares recently.

     

     

    Your 2016 best ideas

    in General Discussion

    Posted

    Longs:

    BEN: Trades at 7x EPS when excluding the $10 bil of cash on balance sheet. Key funds Templeton Global, Franklin Income, and Mutual Global Discovery have great long term track records despite a tough 2015. Value coming back into favor over growth will help their investment performance

     

    Short NFLX: Trades at 450x EPS and is FCF negative. Developing their own content is very expensive and they will have to raise capital

     

    I very much like both of these ideas! I'm betting heavily that you are correct on BEN.

     

    Happy Holidays!

    Any small cap Net Nets out there?

    in General Discussion

    Posted

    GEOS - $205mm in current assets, $40mm cash, $32mm in AR, $124mm in inventory, versus $17mm in Total liabilities.  They own their own real estate and a rental fleet of Seismic equipment.  Total book equity of $289mm versus market cap of $155mm.  Actually has a very good business. Owns large market share in the wireless seismic business.   

     

    Burning cash right now.  Around $5-10mm a quarter.  Company is well run, they continue their R&D during downturns and come out and tend to do well. 

     

     

    "Burning cash right now.  Around $5-10mm a quarter" ---That is giving me pause

     

    I would encourage you to look into SXCL- http://steelexcel.com/

    Safety due to the balance sheet

    Any small cap Net Nets out there?

    in General Discussion

    Posted

    How about PCO, somewhat below net cash in the bank and cash flow positive.

     

    I've looked at PCO and can't figure out what their plan is? The Cash and NOLs are attractive but put in the wrong hands they can quickly be destroyed. I guess they were looking to be a patent troll...but that hasn't worked out. What's plan B?

     

    SXCL-Steel Excel looks like they had a plan to roll-up some oil and gas equipment cos but the timing was nothing short of horrendous. But at least there are some operating businesses to evaluate in addition to having lots of cash/marketable securities ( and NOLs).

     

    Thanks for the responses...keep em coming.

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