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Podcast interview with Nate Tobik of OddballStocks


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  • 2 weeks later...

Why does a company like PDRX even have publicly listed stock?  The company is so small, why even bother?  Same goes for a lot of the microcap banks.  Any thoughts?

 

A few reasons:

1) To allow employees, family members, close friends to purchase the stock.  This is a driver for many small companies that trade.

2) Beyond a certain number of shareholders a company's stock automatically trades and information needs to be released.  Some companies are in this position.

3) Ability to raise capital if ever needed.

4) A legacy thing from years ago.  Company might have been bigger, or public when it was cheaper and now they're just content to fly under the radar.

 

For many of these companies it would be more costly to go private compared to just remain public.

 

Banks specifically like having stock as a way to raise capital.

 

The last is that there is a social stigma associated with being a director/exec at a "public" company no matter how small.  Ego drives a lot of decisions in business.

 

For many dark companies there are no additional costs associated with having shares trade.  SEC filing is about $35k a year to maybe $100k a year depending on the company size.

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Thanks Nate.  The part about ego is interesting and there is no doubt in my mind that its a reality.

 

On the podcast your point about stocks with market-cap <$1 billion resonated with me (I believe Greenblatt has talked about this as well).  I think you're right-on about the little guy being able to gain an advantage in this area of the market.  I also really liked the point about smaller businesses typically being less complicated. 

 

Last question, what is your preferred stock screening tool(s)?  One thing I've tried to find without success is something that can find all the publicly traded companies in a specific geographic area.  For example, I live in the Minneapolis area.  It would be nice to be able to pull up all of the publicly traded companies within the state of Minnesota. 

 

Thanks,

 

Ted

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  • 8 months later...

 

 

Last question, what is your preferred stock screening tool(s)?  One thing I've tried to find without success is something that can find all the publicly traded companies in a specific geographic area.  For example, I live in the Minneapolis area.  It would be nice to be able to pull up all of the publicly traded companies within the state of Minnesota. 

 

Ted - Here is a searchable database of public companies by geographic location: http://www.atlasofpublicstocks.com/

 

It was created by Miguel Barbosa who is familar to many in the value community.

 

Alex

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Last question, what is your preferred stock screening tool(s)?  One thing I've tried to find without success is something that can find all the publicly traded companies in a specific geographic area.  For example, I live in the Minneapolis area.  It would be nice to be able to pull up all of the publicly traded companies within the state of Minnesota. 

 

Ted - Here is a searchable database of public companies by geographic location: http://www.atlasofpublicstocks.com/

 

It was created by Miguel Barbosa who is familar to many in the value community.

 

Alex

 

That is a fascinating interactive map, thank you for sharing.

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